[quote=ralphfurley][quote=sdrealtor]
(snip)…This is the market we will be in for a few years to come…(/snip)[/quote]
Lord Jesus. I hope not.[/quote]
SD Realtor is spreading more gloom and doom tonight. Whereas I will give you some good news.
For the past three months or so, the banks have suppressed inventory all across America because they have been waiting on the federal government to announce and pass the various housing/foreclosure bills. It made no sense for banks to act before they knew exactly what type of assistance they would receive courtesy of Uncle Sam. In recent weeks the Obama administration made into law the $75B foreclosure assistance program. Banks now know exactly what type of modification programs the government stands behind, and how much in the way of federal subsidies they will receive for doing modifications rather than foreclosures. The Feds have stated they hope this latest program will curtail 50% of future foreclosures, but admit that is a best case scenario. The point is, there are more foreclosures to come…definately not as many as in 2008, but definately more than in Q1 2009.
That leads to the second piece of good news….for a variety of reasons, non distressed property has been in a holding pattern for a considerable period of time. At some point sellers will decide its time to sell…that will increase the supply as well.
But the most important thing to remember from this thread is the following….unemployment numbers will continue to deteriorate throughout 2009, while at the same time, mortgage rates will go up later in the year, and even more so in 2010. Higher rates will reduce demand across all price levels, and at the mid/upper levels, prices will drop significantly.
