According to this chart March 08 is the worst month for Resets. It looks like we still have a few more rough months though. Dont forget that it takes several months once a foreclosure happens to get the house on the market. I see the market being flooded with houses during the next 6 months. Prices have come way way down in Central California. How is your area doing?Sunday, March 23, 2008
The Peak
According to this chart March 08 is the worst month for Resets. It looks like we still have a few more rough months though. Dont forget that it takes several months once a foreclosure happens to get the house on the market. I see the market being flooded with houses during the next 6 months. Prices have come way way down in Central California. How is your area doing?
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In my area? That's Las Vegas. Prices are down, propelled by banks seeing reality and letting REO properties go at market price instead of "what we lost on it" price. This in turn has meant Joe Average has had to lower prices and in many cases short sales. Inventory of available houses has dropped substantially over the last 6 months: from 23 months supply to 16.6 (as of last week). Certain market segments are on fire: the under $250k homes are moving fast as long as they are in good condition; certain "underpriced" repos are having bidding wars push the actual sales price 5 digits over ask (I hear rumors of 6 digits, I can only vouch for 5); cheap condos are being eaten up like candy by investors and those seeking cheap "rent". Pendings have almost doubled since January.
Now, Vegas isn't like a lot of places. We depend more on the international economy than the national economy due to tourism -- and the cheap dollar makes for lots of tourism. Our brokers are telling us to actively seek international clients for second homes and investment property. "Cheap" yen, euros, and Canadian dollars means that they compound their profits when (if?) the dollar returns to historical levels.
I am cautiously optimistic that we are closer to the end of the problems than the beginning. Locally, anyway. California's mileage may vary.
Oops, I got one number wrong. Pendings are up 44% from January. That's not even close to double, but rather "almost 50% higher". My error.
Our old neighborhood in Maryland, where I sold my house for $420K, they're now going for $299-325K
Ouch.
Glad we got out when we did.
FYI, we sold 2 years ago this month (back in MD.)
Sold my house in Eastern SGV (Los Angeles County) for $600K in a gated community to who I believe was a speculator, He lost it last Oct and it is now on the market for High $4oo's(Ouch)I bought it new for $350 in 03' put about $100k into it, I wish I could buy it back as a rental but getting a loan is tough these days if you already have a 1st home. The banks underwriting is very strict right now and I'm sure I would be losing $ any way. Still hasn't sold and most homes that have sold in the last 6 months locally have actually lost some value, That's what's keeping the sales down, But if your in it for the long haul as I am it's not as bad, I see the market getting flooded with more FC's in the summer but some normalization in the market towards the fall of 08'. I hope I'm right.
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