Thank you.
You’re right of course. I should have put in the added comment that current purchases are going for up to 30% less than LP and many of the List Prices were already below market value. Alot of it is dependent on the area as well. For example, there are homes going for 15K-30K. Yes alot need work but over all still a good investment even if for only the rental market. Some with money are looking for places to ‘park’ it for now; thinking they can ride out the storm.
Also, first time home buyers are still surfacing but, need near perfect credit. I listed a foreclosure, 1350 sq feet, 1 acre. House in good condition. Went for 45K (u/c) and it is a first time home buyer. His payments will be less than renting.
So it’s dependent on each individual’s circumstance. I’m not sure anyone knows what the true value is of any one property. What is the value based on now? Original SP, which was most likely based on an inflated appraisal? The MLS trends? LP and then the SP of that property? Or is it volume based which is also skewed. I don’t trust the MLS any further than I could toss it because there are agents that deliberately inflate their sp in this area. There’s no way to verify the SP around here, not without tracking down the closing office because it’s not required to disclose the amount to the county. (yet)
In other words, how can anything be predicted when the original figures were so skewed? Another thing to consider is the 1st and 2nd mortgages. You know, the lines of credit based on equity. If you were to investigate the loans/homes underwater, 9 times out of 10, they have a 2nd.
One thing we can agree on...it’s a mess and it is going to get messier.
By current prices (from which I expect at least a 20% additional decline -from 2008 levels), I mean actual selling prices. Truly, the only price that matters is what a willing buyer will pay and what a seller (including a bank that wants to unload REO) will take for it.
Listing prices, as you correctly note, usually reflect little more than sellers' wishful thinking abetted by agents who don't want to lose the listing to someone who will play along.
I think are are in agreement that the trip to hell in a handbasket continues apace!