STAN, perfect point that it cannot go on for long.
There are many people today who are refusing to lower their asking prices. Some because of emotion and some because of what they owe.
Many people today say that they cannot sell their house.
The reality is that they cannot sell their house at anywhere near what they are asking. If you had an unreserved auction, it would sell.
It isn’t possible that anybody knows exactly how many homes will go to foreclosure. There are estimates, but until a sale is scheduled, we don’t have an exact idea. (NOD’s are a start)
Temec, after you buy your home, will you be looking for a 2nd one with a similar down payment ??
The question is who is going to buy the REO’s ??
I don’t believe that there are an equal number of Temecs with liquid reserves and solid situations equal to the avalanche of foreclosures coming.
Take 500 foreclosed current “owners” who are losing homes because they cannot afford their new payment. Forget the fact that they now have a foreclosure on their credit history. Without crazy financing again, most still probably have no down payment and cannot qualify for a new purchase even at 50%-60% of what they previously owed.
That’s 500 homes added to inventory.
Add in the psychological trauma that goes along with a foreclosure. Many won’t want to buy again ever for a long time.
At current market rents, there is still a long way to go for wise investors to step in.
Another big question is will there be enough UN-wise investors who step in and overpay before it gets to a level that the wise ones are interested ??
The motor is slowing down, the RPM’s are dropping.
The county stands to have a HUGE drop in property tax revenue as prices fall.
