Bellevue Real Estate – Strategic Defaults.
Posted on 14 May 2010
“WALKING AWAY” IS A MAJOR TREND—LET’S NOT PUT OUR HEADS IN THE SAND!
IF YOU WATCHED 60 MINUTES THIS WEEK ON CBS, YOU TOO CAN SEE THE WRITING ON THE WALL!
Homeowners are considering walking away from “underwater” homes—and they are doing it in great numbers. These are not your “subprime” mortgage foreclosure—they are average homeowners who have been making payments and CAN AFFORD to keep paying! They choose to move on because they do not see a future in their homes!!!
FALLING HOME VALUES. This is still A REAL ISSUE TO CONSIDER……prices have stabilized, but may fall again! Let’s not put our heads in the sand—we need to act now! With attention on the seriously underwater middle class homeowners, walking away from their obligations, we now have another possible situation that will cut into the already lower home prices, and cause another waive of depreciation.
Falling home values have not stopped–they may have slowed somewhat in certain markets, but prices are still coming down in most areas of the country. With foreclosures still a factor and short sales increasing each month, we need to take a long hard look at what we need to do in order to prevent further erosion in the housing market. What we DO have in our favor are BUYERS!…People are looking to buy in this market because of percieved value, Perhaps for the first time in a decade!
There is no way to say how far home values will fall; we can look at prices as closings happen or we can look back on a 3 month time period to try to catch the trend for the next 3 months. None of this information is usable, however, because the actual price where a property trades appears to be based on the homeowners situation, not on any market trend. No longer can we use 1 year or even 6 months as a criteria for pricing homes.
Now more than ever before, properties on the market have to use ALL AVAILABLE RESOURCES to be sold…and the time to do it is now, before any more foreclosures hit the market, and before the arrival of the massive amount of summer inventory. If I can be of assistance, please contact me immediately.
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