Every day we hear news about the real estate industry, mostly depressing. You see the media mongrels’ feed on news that creates negative emotion because that sells! Not that we should put our heads in the sand, we do have a huge problem that will take time to resolve but lets face it, it’s not the first time that there have been problems with the housing industry. Just like with stocks, gold, commodities, and automobiles…it’s a cyclical thing and in time we’ll be on to the next thing and our housing problems will be history once again.
Right now our biggest challenge is the glut of inventory and the record number of foreclosures (with more coming down the pipeline). We have choices, either stay where you are for now, or accept that what your house was once worth is history! If you have a plan and you are selling to accomplish that, be realistic and price it to sell, everything has it’s selling price. When you decide to sell listen to the advice of a seasoned realtor and if you’re not comfortable with what they are telling you and the facts that they are presenting, then now is not the time for you to “test the market.”
Right now even homes that appear to be priced right are taking much longer to sell, it’s a buyers market and there is so much for them to look at that they can’t make a decision. Add to that the builders are slashing their prices, giving away what used to be upgrades for free, paying your closing costs and practically putting your first born through college! They have to in order to survive, if they don’t more job losses and more homes for sale or foreclosure. It’s a vicious circle here and people that are essentially “locked in their homes.” So fasten your seat belts and stay in your seats, the ride isn’t over yet. But it will get better…
Here is an article published today on Realty Times website. Scary but true…
A Super Bowl Year For Foreclosures by Peter G. Miller
"The final 2007 figures from RealtyTrac.com show that foreclosure actions increased 79 percent when compared with 2006. Roughly 2.2 million households received default notices, auction sale notices and notices of bank repossessions. Not all of these homes were lost -- about 1.3 million were sold at the courthouse steps but the rest are hardly safe: They belong to distressed homeowners, people likely to sell fairly soon if they can whether prices are up, down or sideways.
These forced sales, when they appear in official records, will become part of the "comps" used to value your home if you sell or refinance. And if the comps are down you can guess how the world will price your house.
Look for more of the same in 2008 and perhaps worse. Just in the toxic loan category, the Federal Deposit Insurance Corporation now estimates that "almost 1.3 million hybrid loans are scheduled to undergo their first reset during 2008. An additional 422,000 subprime hybrid loans are scheduled to reset in 2009, which means these problems will not end anytime soon."
What can you do? Don't panic. Once the current inventory of exploding ARMs is refinanced or terminated there will be less downward pressure on home prices. Until then, buy and refinance with fixed-rate loans at today's low rates and pay down consumer debt. Most importantly, ask nearby brokers about sale trends in your community because national numbers may not reflect local real estate patterns."
You can visit my website at www.CallNaplesHome.com or email me at BethBrownRealtor@comcast.net
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