this was on yahoo. i find it very very interesting.
I can tell you that around my neck of the woods southwest michigan the deals are really getting better. the banks are softening up, REA are now pricing them to sell, not to sit and i can see they’re only going to get better. I’m loving it !!
I western Mass, the prices are just starting to come down. I’ve seen a couple of REO’s that started out $30k more than the asking price now. I’m currently looking into an REO that started out at $80K in March. Now its $50K. It has 3BR/ 1 Bath each side. I could easily rent it for $750/ side. There’s more out there. I’m also seeing a lot of “Owner financing available” on these listings.
on a side note oil has dropped below $125 :banana :elephant :biggrinparty :biggrinparty
hopefully it can sustain the price and drop further
I think the market will drop alot further because of something roubini said in that video.
people are in upside down homes and then adding all these foreclosures to the market will cause many many more to be upside down. these people will want to walk away.
the foreclosed properties are bringin down the rest of house values. meanwhile the rest of the homes are mortgaged to the roof.
add in ARM mortgages that will reset and high inflation/ gas / heating prices and we have a recipe for foreclosure cities
Next Wed :cool
It’s an unanswerable question on many different levels.
A) what market, exactly? Your market, my market? Or the great hyped “National Market” which doesn’t really exist?
B) no way to know where the bottom will be only long after the bottom was reached and prices have rebounded unless you have ESP or a crystal ball. You can speculate, but that’s about the best you can do.
C) even within specific markets, you usually have areas that would be doing better than others and it’s important to know ALL the numbers before determining if a market is truly down. On that note, is a market really “down” when all it’s doing is going back down from artificially created “value” to true market levels?
Use my market as an example: Across the board, we are down from last year average of only 4%. However, we are on board to sell MORE home than last year. Also, in several areas within my market, even though the average home price has fell, the Median home price has RISEN. What does that mean? To me, that there are more higher priced homes selling than last year. So, if the average is down, but the median is up, is that an “up” or “down” market?
Raj
Raj - you raise a good point. For me the median is a better representation than the average. If you have outliers in your market (e.g. few houses that sold at very high prices or very low prices) this would impact your average… So for example, if most houses in your market are selling for around $100k, your media will be close to $100k. But if you had few outliers that sold for $1MM, this would push your average up, but your median would still be closer to $100k.
So in your example, I would say that you are in an “up” market.
Just my 2 cents.