[quote=Still Surfing]Although inventory may be low there are some serious issues in Mira Mesa coming down the pipeline.
According to January Corelogic data there are approx 4000 in 92126 that have negative equity in their homes. When you look at the data on a granular level most of these people above above average interests rates and will not be able to refinance.
As we have seen negative equity creates illiquidity when life change events occur such as job relocation , divorce Heath issues etc. you saw this on the house mentioned in he article.
I am predicting a perfect storm as we will see a surge in short sales especially in Mira Mesa as banks want to mitigate foreclosure risks(bad publicity) and costs( costs less the ss that to foreclose).
In 2012 sellers need to take advantage of the tax free status of forgiving debt that expires in 2012. That in combination with cash buyers creates perfect market conditions to clean the debt off the books of many homeowners underwater.[/quote]
What make you think all 4000 are distress and they all are trying/going to sell? How many of those 4000 will have to sell? I don’t have that answer, but I’m pretty sure it’s not 100%.
We’ll come back to this thread in 9 months and see if the perfect storm will hit this year. I’ve heard the “tsunami”, “perfect storm”, etc. for many years now.
