Tightened Lending Rules May Be Affecting Buyers
Resale home sales continued to decline in August, and the median, or market midpoint, sales price also declined for the first time in months.
In August, 265 resale homes were sold in El Paso, compared with 400 a year ago, a drop of 33.8 percent, according to new data from the Greater El Paso Association of Realtors.
August sales also decreased almost 17 percent from July, when 319 resale homes were sold.
“I’m disappointed with the figures because we were trending upward” in small increments in previous months, said Dan Olivas, president of the Realtors association and broker-owner of the Re/Max Elite real estate firm. “I’m hearing more about people not qualifying for loans” because lending requirements have tightened in the past 45 to 60 days, Olivas said.
But Olivas expects the market to pick up as Fort Bliss’ troop influx grows.
Just more than 5,000 new and used homes were on the El Paso market Wednesday, about 1,000 more than a year ago.
“The market is really open. There are a lot of homes available for any income level,” said Rene Hernandez, who, along with his wife, Kendall, decided this was a good time to buy their first home. They expect to close on a $232,500 home in Santa Teresa later this month.
“Everyone is saying this is a buyer’s market,” said Hernandez, 31. “We felt this was the most opportune time to buy. … We definitely felt we were financially ready. My wife just graduated from college (with a nursing degree), and we now have two incomes.”
Olivas said he’s seen some home prices decrease as sellers try to attract more buyers.
The median price of a resale home in August was $133,025, compared with $135,000 a year ago. That’s the first decline recorded by the Realtors association since March.
Credits: El Paso Times