Many of the foreclosures that are presently being sold are being bought by investors who believe that the present bust is just a temporary thing. When their “investments” are still sitting on the market for sale at the end of 2008, panic will set in. The man in the Tribune article is delusional if he believes that his property is not going to be worth less than he just paid for it within a couple of years. I guess it’s just human nature to look at things from a subjective viewpoint that suits your particular purpose. To me, it’s denial……..denial…………..denial, of the obvious! I am a retired CEO and I am less apt to become emotionally involved with a house or anything else other than my wife, family and dogs. To me, it’s a simple matter of balancing $$$$ and common sense to figure out what’s best for you and your family.
Anyone who really needs to sell their house who is holding out for their present asking price is deluding themselves each month that they don’t lower the price to move it NOW! When prices really start to fall, panic will set in and that’s when we’ll see just how far prices will drop. I’m guessing 25-40% for houses and 35-50% for condos.
I may be dead-wrong but with the inability of the present owners to refinance many of these properties………… due to their lack of equity in their respective properties / inability to get an appraisal that comes anywhere close to what they paid for the property two years ago / inability to make the payments when their 2-28 loan resets at a much higher interest rate / inability to find a willing buyer who can qualify for a mortgage under tighter credit regulations and more $$$$ needed for a down payment…………sellers are going to have a BIG problem moving their properties. Of course, for those who bought their houses before 1999-2000, didn’t use their house as a credit card and don’t have to sell……..they will still have a home in San Diego with no problems. They will just have missed an opportunity to cash out and rent or move to another state that offers much cheaper housing.
