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Looks like alot of banks have changed their minds on forclosing to workout better terms .Guess they figure that if they are going to sell the contract for 70 cents on the dollar why let another investor make the money; when they will be writing off the 30 cents anyway.
I have a friend who goes to UC Merced and is thinking of buying there in the Central Valley in CA. I told her NOT to buy right now because the housing prices are continuously falling. If she bought right now, she would be underwater as soon as she purchases the house.
The NAR was also telling us that house prices in El Paso were still increasing at around 5% last year. However, we finally sold and lost over 6% of what we paid the year before? Some owners, who did not drop their prices are still on the market with huge price drops and are still not selling.
I am not one to defend NAR, ever.
As it relates to prices, they use the numbers reported to the MLS on closed transactions. Averages are not useful measures unless the majority of homes are worth the average.
My area shows home values are appreicating. This is because 2008 was a record year for high end homes, compared to previous years.
The unsold inventories of mid market homes, tells a very different story.
I think these people who are barely hanging on are not acting smartly. There is no chance of real estate prices rising in the next 3-4 years. But a large probability that they will fall even farther downward. The banks have a huge inventory of foreclosed homes that they are just sitting on and not selling. And every month the inventory grows. Once they start to sell these homes, prices are gonna go way down...
you need to sell now before things get really bad. I wish it wasn't true, but i don't see any way this is not going to happen. Taking a loss now is a lot better then losing a huge sum of money, or possibly going into bankruptcy later. Put your home up for sale and price it aggressively if you are having trouble affording your mortgage.
I don't know where you are but in Atlanta it is bad. Not as bad as other states but bad enough. My value fell $40k in two years. A portion is due to the real estate market/economy and the other factor is that the community builder went bankrupt so there are unfinished lots in the subdivision as well as many empty homes that the bank now owns. I am in the process of trying to do short-sale as the payments are killing me and the house is not worth fighting for considering what is going on in the community along with other factors. My home appraised for $240k in 2007. It is 4 bedrooms/2.5 bath and no basement. They are attempting to sell homes in my community that are 5 bedroom, finished basement, 3 bath for $189! It's horrible.
I think these people who are barely hanging on are not acting smartly. There is no chance of real estate prices rising in the next 3-4 years. But a large probability that they will fall even farther downward. The banks have a huge inventory of foreclosed homes that they are just sitting on and not selling. And every month the inventory grows. Once they start to sell these homes, prices are gonna go way down...
you need to sell now before things get really bad. I wish it wasn't true, but i don't see any way this is not going to happen. Taking a loss now is a lot better then losing a huge sum of money, or possibly going into bankruptcy later. Put your home up for sale and price it aggressively if you are having trouble affording your mortgage.
The issue "with people barely hanging on" is that most of them do not have the financial resources to get out of the housing crash. High earners can take a 200-400K hit and still move on. They can rebuild much quicker. Lower or middle class homeowners whose home values are just slightly underwater do not even have 10-50K in the bank to cover their lost value. Most of them put very little down payment into their homes.
I don't know where you are but in Atlanta it is bad. Not as bad as other states but bad enough. My value fell $40k in two years. A portion is due to the real estate market/economy and the other factor is that the community builder went bankrupt so there are unfinished lots in the subdivision as well as many empty homes that the bank now owns. I am in the process of trying to do short-sale as the payments are killing me and the house is not worth fighting for considering what is going on in the community along with other factors. My home appraised for $240k in 2007. It is 4 bedrooms/2.5 bath and no basement. They are attempting to sell homes in my community that are 5 bedroom, finished basement, 3 bath for $189! It's horrible.
I'm confused. Which is not out of the ordinary! LOL! But how do you figure that your house has only lost 40k in value in two years if they're selling much bigger, newer homes for 50k less than yours? Wouldn't that mean that yours has lost at least 50k and more like 60-70? Again, I could be having a blonde moment.
I'm confused. Which is not out of the ordinary! LOL! But how do you figure that your house has only lost 40k in value in two years if they're selling much bigger, newer homes for 50k less than yours? Wouldn't that mean that yours has lost at least 50k and more like 60-70? Again, I could be having a blonde moment.
You are probably right I'm just going with the recent appraisal which is $40k less than two years ago but I doubt that I could sell it for what it appraised at just recently. So the perceived value is probably about $60-$70k less than two years ago.
Posts like this make me cringe because everything is DEPENDENT on where you are in the country! It is NOT all doom and gloom for every seller out there! In parts of the country, prices have not only stabilized but are actually creeping upwards! If you have property in a desirable location and even price slightly above comps, you CAN get your asking price. Not all of us live in Detroit or Florida!!!
Even if you live in FL, prices are still somewhat holding their value. It depends where you live, like mentioned. I'm not saying prices haven't dropped a bit, I'm saying prices haven't plunged in my area.
The issue "with people barely hanging on" is that most of them do not have the financial resources to get out of the housingcrash.
High earners can take a 200-400K hit and still move on. They can rebuild much quicker. Lower or middle class homeowners whose home values are just slightly underwater do not even have 10-50K in the bank to cover their lost value. Most of them put very little down payment into their homes.
Lots of people may not have the financial recources to get out, but they do have the financial recources to stay put. This is what the overwhelming number of people do, when local bubbles pop.
We are losing around 1.2 million jobs every 2 months with no end in sight. That alone is going to keep house prices dropping. Then when inflation sets in soon......forgetaboutit !
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to buy right now because the housing prices are continuously falling
. If she bought right now, she would be underwater as soon as she purchases the house.
