Sunday, November 7, 2010

The Housing Fire Sale

What does your housing situate look like? Do you own? rent? thinking of buying while prices are low?

We all know about today's housing market as it references buyers, sellers, banks and the mortgage companies. Many people who cannot sell their homes and move on with the lives are now reduced to having a "Fire Sale". I first heard the expression in 2009 when desperate clients asked if I saw them selling their homes soon ... before they forced to have a Fire Sale.

From Short Sale to Fire Sale. Many people have completed the short sale process only to find out that they still cannot afford the payments on their home. People are now just walking away from their dream houses and moving in with family. This is causing the banks and homeowners to sell houses at fire sale prices. In 2010 banks took a vacation from processing foreclosures. This is commonly thought to be because of the volume of bad loans. It is also in part because the home values continue to plummet and potential buyers are too fearful that the housing market has not hit bottom yet. All indicators show that 2011 will not change the downward trend of housing prices and fire sales will slowly turn into blazing fire sales. See for yourself how many properties are in foreclosure, in your neighborhood.

Do you see the housing market leaving off? moving higher? when?