Real estate (Knoxville, Loudon: mortgage, equity, foreclosures)

[Monicaabc]

Hi, I'm moving to Knoxville area and I wonder if anyone can give me a feel for how the market is in the area. I'm in Florida and here in P'cola it seems that everyone has their homes for sale, but very few are selling. Prices are dropping and I think we are starting to see some movement. So how is it there???

[pdq]

Well as of today there are 24,482 properties on the Knox mls. This doesn't count the hundreds or even thousands of area FSBO, etc. The market is flooded, drowning in properties. Building permits in metro counties have tanked. Blount down 49%, Loudon down 36%, Monroe down 39%, Knox down 5.5% from 2 years ago.

Are you coming here to sell RE? If so come on up, I'm sure the other realtors would love some competition, lol. I think prices will trend flat to down for quite awhile.

Good luck to you.

[hiknapster]

It seemed like there is a lot of inventory and prices are dropping on the MLS.

Today, we went out looking at houses and I was shocked. I am mostly on the highways and not in residential areas all week, so I've never noticed this before. Wow! There are tons of houses on the market!

I wonder where the heck all these people are moving to and why. I don't get it.

[pdq]

Everyone is trying to cash out before the market tanks. It's like a bizarro game of musical chairs, everyone is trying to find that one last buyer floating in with equity cash.

[Monicaabc]

I heard on Fox news this afternoon that "some" big builder "somewhere" is suppose to slash their prices by 100k per house or more & if that happens it will drive prices down across the country. (according to the talking heads) It's pretty scary, however, I'm planning to stay put when I buy so if the prices tank maybe after a few years I won't lose anything.

[pdq]

Yeah that sounds right, I think the latest was Hovnanian that are cutting prices in huge chunks. Of course Hovnanian had to do something, they are hemorrhaging money badly and their stock has gone from $75 to around $10 a share. Maybe this will hold off bankruptcy for a while. It's a catch 22 though, when they lower prices for the same or similar products it gets the previous buyers all worked up since their properties are instantly worth less than they paid for them. Lennar has a class-action suit against them for this same thing.

It's not going to be pretty for anyone, not at all.

[gemkeeper]

Originally Posted by pdq

Yeah that sounds right, I think the latest was Hovnanian that are cutting prices in huge chunks. Of course Hovnanian had to do something, they are hemorrhaging money badly and their stock has gone from $75 to around $10 a share. Maybe this will hold off bankruptcy for a while. It's a catch 22 though, when they lower prices for the same or similar products it gets the previous buyers all worked up since their properties are instantly worth less than they paid for them. Lennar has a class-action suit against them for this same thing.

It's not going to be pretty for anyone, not at all.

You are right on the money, pdq - again! Heard on ABC Worldly News @ 7 pm that 1) The company has lost money big-time - like many others. 2) They are having a fire sale to unload as much inventory as possible. 3) Residents who purchased the past two years are outraged that they would sabotage their homes' value by having this type of liquidation sale. 4) A home market analyst who was interviewed predicts that this is only going to help this quarter's figures out, but that they will have the same inventory loss situation staring them in the face for next quarter.

What is the fix for this housing dilemma? Wouldn't you think that there would be a major surge of builders, mortgage lenders, government think tanks, market analysts, etc. putting their collective heads together to at least suggest some strategy for correcting this mess. Instead I hear, correct me if I am wrong, that all concerned are waiting to see when the market is going to bottom out. BUT, there is no punch line!

[pdq]

Originally Posted by gemthornton

What is the fix for this housing dilemma? Wouldn't you think that there would be a major surge of builders, mortgage lenders, government think tanks, market analysts, etc. putting their collective heads together to at least suggest some strategy for correcting this mess. Instead I hear, correct me if I am wrong, that all concerned are waiting to see when the market is going to bottom out. BUT, there is no punch line!

I like your style Gem, we don't always agree but you have some interesting ideas.

You would think that they would want to put their heads together and find a solution but this is the real world and in America we compete, compete against anything and everything. I really think their only concern is luring in that last qualified buyer or last available equity dollar floating about. On the way up they competed and paid ridiculous premiums for land tracts to build, competed for the best contractors/subs, ad dollars, mortgage companies competed with teaser rates, perks, etc, you name it. Now they compete on the way down to zero.

Death match, anything goes, all's fair in love, war, and real estate. Last one to the exit looses.

[gemkeeper]

Originally Posted by pdq

I like your style Gem, we don't always agree but you have some interesting ideas.

You would think that they would want to put their heads together and find a solution but this is the real world and in America we compete, compete against anything and everything. I really think their only concern is luring in that last qualified buyer or last available equity dollar floating about. On the way up they competed and paid ridiculous premiums for land tracts to build, competed for the best contractors/subs, ad dollars, mortgage companies competed with teaser rates, perks, etc, you name it. Now they compete on the way down to zero.

Death match, anything goes, all's fair in love, war, and real estate. Last one to the exit looses.

Sadly, pdq, I think you are right. It is going to hurt the consumer, mortgage companies (read in the paper that some were encouraged to falsify income to qualify buyers - what greed!), builders, next the butcher, the baker and the candle stick maker.

[hiknapster]

I drove my husband around tonight, showing him all these houses that are for sale. My mother wants me to buy right now, but I'm just too nervous about the situation. Anyway, there are still lots of signs for mortgage money, too. We even saw a hand-written sign offering mortgage money. Right on the side of the road!

I wonder if some of these homes are foreclosures? It seem like a lot of these homes are in certain areas. The more established areas don't seem to have as many houses for sale.