I am waiting for it. There has to be a buyers market and soon.
Posted on 03/09/2006 4:23:09 PM PST by ex-Texan
Risky borrowing is catching up with a number of homeowners across the U.S. Foreclosures rose 45% in January compared to a year ago, and experts only expect the pace to accelerate.
The number of homes entering some stage of foreclosure - increased 45% in January from the same period a year earlier * * * Job losses in some regions were to blame, but so, too, were risky borrowing practices that left homeowners little wiggle room on their mortgage payments. * * * many economists and industry observers expect the pace of foreclosures to accelerate this year.
* * * The areas of the country with the highest foreclosure rates on a per capita basis were Georgia, Nevada and Colorado.* * * The states with the largest total number of foreclosures were Texas, with 14,669 foreclosures; Florida, with 10,334; and California, with 9,354. * * *
In the last few years, many buyers took out interest-only, variable-rate loans, and in some cases put no money down to afford a house * * * He estimates one out of every three loans issued in 2005 was an adjustable rate mortgage. * * *
In the months ahead, analysts expect delinquencies to rise, putting a greater number of these foreclosures on the market for buyers to choose from. That’s bad news for owners who live in these areas, analysts say, because rising foreclosure rates typically mean falling home prices.
But it’s good news for buyers looking for some relief from the high prices of the last several years. In addition to driving neighboring home values down, foreclosures themselves tend to sell at a discount to the market * * *
(Excerpt) Read more at realestate.msn.com ...
I am waiting for it. There has to be a buyers market and soon.
Damn, I'm gonna miss out on the fun, just because my career/aspirations require certain strategies. Oh well. Maybe next time around. These things come and go in cycles, as far as I can tell.
Looking back though, I am happy to say I bought my house near the low point of interest rates (2003), with a plain vanilla 20 year mortgage, and got a nice place for under 200K. I'm happy with how we did during this recent cycle.
Just waiting...
Moving to TX in a few years....maybe we will find a bargain...
Just glad I'm out of the real estate services industry...
The market continues to only go up in Seattle. 350 thousand dollars buys you a hole in the wall condo built 30 years ago with less than 1000 sq ft. 500 thousand will buy you a entry level home built in 1910.
The west coast has yet to see any price corrections. Only the two most extremely pumped flippers markets, Las Vegas and San Diego have seen any type of a slowdown.
I remember by the time I bought, in 02 it actually was, not 03, everyone already thought the market was white hot. Little did we know. The rates were so low, and it was definitely a seller's market, all the news was about how sellers were getting more than the asking price, bidding wars, etc. I had saved up a nice little chunk of loot, biggest in my life, and was really not in a hurry to part with it. Didn't know what to do with it. Buying a home made sense. Luckily, found a place we really loved, and still love. It was a great decision. And the best part is the money is still mine when you think about it. It's right here in the home. So it's a great thing. And we get to live in it. But yeah, at the time, we thought we were buying near or at the top of the market, but found something in our price range and went ahead and did it. Good thing!
TX always has bargins.
What you don't dare mention is that last year at this time foreclosures were very low. So they're returned to normal now, so what?
Hows the web site business anyway? I'm sure FR is a good place to advertise it.
You must have your dark glasses on. This is great news! Buy cheap, sell high.
2002/2003 was the sweet spot if you were looking to buy and hold onto your property for a while. Low interest rates and the market was just heating up.
Now prices have gotten so out of touch with reality and everytime you think the market has peaked, prices continue to rise.
I have to admit that getting that "bargain home" works for the buyer but I do feel bad for the owner that lost their home...
Well, there are areas where there are genuine shortages of housing.
A guy I know was going back to India for 3 weeks to get married. He had a place in a 3-bedroom apartment in Jersey City that he was sharing with 3 other Indian guys, rent of $3000/month. He told me that there were plenty of guys lined up to take his spot. Partial month, no problem, they're ready to move in right away.
Of course, he'll have to get his own apartment when he returns with a wife.
And that's just renting! Imagine if you wanted to buy something.
absolutely.
I don't think we are going to really see any real flood of homes until the 5 to 7 year arm loans start adjusting upward in a couple years, interest rates spike, or another recession with big job losses hits the US.
Looks like we nailed the sweet spot, then. I couldn't even buy a place now, I don't think. It was Oct 02 when we bought, now that I recall, and I was adamant about not going over 200K! We got 6.0% interest, which wasn't the rock bottom, but close enough, and looking at what's happened since, you can't beat the price with a stick. Very, very happy we bought what we did, when we did. Woo-hoo!
And yes, we were definitely looking to buy and hold. We pay it off like it's a 15 year. We pay an extra 20% or so every month, and have done that every single month since we bought. (knock wood!)
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