Fearful…
the inventory isn’t going to vanish. 1,000 foreclosed homes will seek a level until they are bought.
The lender’s do not want the inventory sitting vacant, nor boarded up creating blight.
The also generally don’t speculate on if/when the market will recover so they aren’t going to wait.
Since it’s going to be different this time (!!)
Perhaps REO’s will become landlords and start renting thousands of properties out. It’s always easier to sell to an investor when you have a tenant.
Either buyer A who was foreclosed on will buy Buyer B’s foreclosed house through creative financing, or the foreclosed party will look to rent somewhere.
Assuming that 1000 people want to stay in the area, they will be playing musical houses, and end up 1000 different addresses. Many times only one spouse was on a loan and the other can still qualify. They can buy a similar house and owe 30%-40% less and with more manageable payments.
There will be cases where a house from a private party will be competitive with an apartment. They will be desperate.
Unless they start burning houses down to create a shortage, there is plenty of inventory. Many People STILL cannot buy until it becomes affordable. Somebody will figure out the rental angle, so it will create some cashflow.
I think that the majority of houisng related job losses have already happened. Many real estate agents and mortgage people are commission only, with other incomes while theyt are ‘waiting” or they have already left.
4plex,, there used to be an index of number of U-Hauls headed into town and outta town. I thought that was the 4 to 1 you were referring to. I haven’t heard the financial angle, thx.
