Unfortunately I do not have many good answers for you…
Will there be another leg down?
Yes I think there will be. I don’t think it will happen as soon as everyone wants it to happen. If you go back at previous posts there were lots of “tsunami” and tidal wave predictions for 2009. Fundamentally those could have been right but the market is subsidized so poof, they could not have been more wrong. So I think we need to let the string play out and then yes you could see the leg down you are hoping for.
Is there shadow inventory out there?
Yes… however many people like to toss around shadow inventory and think every zip code has tons of it. That is a fallacy and a big mistake. Is there alot of shadow inventory? Yes. Is there more of it in Spring Valley then Penasquitos? Yes absolutely.
How will it be released?
Could not tell you. Honestly to this day I do not even know the rate of release right now. I think there is an underestimation of bulk purchases, and of PPIP purchases however in no way do those activities soak up all the bank held properties. However there are so many defaults out there and future foreclosures that I cannot estimate how they will be released, how they will be hidden, held or whatever.
It is all a shell game now Mercedes.
At what price does the competition narrow substantially?
This is SUPER dependent on the neighborhood and the subject property. I cannot overstate that okay? It really really varies… Sorry for being vague but it is what it is. Give me some zip codes to work with and I may be able to help. However even in those zips there will be super desired properties and super UNDESIRED places.
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I cannot tell you if renting fits your needs or not. That depends on you and your family. I think if it is ONLY financial waiting another few years may be advantageous.
