What do you think set the prices for the homes? The great location of the property, your profound sales skill, or cause of its’ rustic charm? Realtor guys found the place for the buyer, we got you the financing because we kept a pulse on how the lenders wanted the loan packaged.
Alt-A is done. Most of us on the mortgage end are sitting on the sidelines hoping most of the lenders we work with are going to bring it back, but something tells me that they won’t.
20-40% decline, sure…It’ll take those type of decreases for income to meet price. Plus, you can ask whatever pie in the sky price for a property, but unless you find a buyer that can either buy it cash, or fully state their income, you’ll have buyers but no financing. The decline won’t happen overnight since most sellers and realtors are clueless. I tried telling some of my realtors that the credit market was crumbling apart and aside from the look of panic from the old timers, the newbies had a blank stare like I told them that aliens have landed on Capital Hill.
