What is the news trying to say? Are thing getting better worse what is up with the media. We'll yes they are woes and yes some may be better. The question isn't what happening it's why is it happening. Tax credit expiring cause people to runs out and get a home under contract. They probably rushed to put a home under contract before the credit expires and settled in some cases.It then got extended for a few months and I predict a lot of contract will be withdrawn. I can see it in the activity since the announcement on my short sales. No one saw it before because you couldn't get a short sale closed before tax credit expired but now lots of showings. What does it men with the other ominous headlines of upside homeowners and more housing weakness recoded foreclosures. Well we having had the market reach equilibrium between the need for housing at a specific payment and the ability to qualify. SO we don't have the home prices equal to what people will pay on a monthly payment equaling what home cost or better can be sold for. What next more lost home to foreclosure and more banks looking lots more money. That what has to happen. In Utah a $400,000 home has to get down to a $280,000 home. Sure it use to be a $600,000 home in 2006. That has no bearing on it. It's simple supply and demand Economics 101. What do you do depending on what side buying or selling you make a plan that is best for you and you call me and execute it. That's the best I can do with out writing 10,000 words on both. I writ at 30 words a minute but I speak at upwards of 100 with gusts in the 130's LOL.
My educated guess in ut is were in the AZ range of 45% upside down home owners. My guess for AZ is it's really more like 70% because of the real drop of home value there.
Daily Real Estate News | November 24, 2009
One-Fourth of Borrowers Are Underwater More than 23 percent of people with mortgages owe more on their properties than they are worth, according to a report released Tuesday by research firm First American CoreLogic.
Another 2.3 million homeowners are within 5 percent of being underwater, bringing the total of those who are upside down or close to it to about 28 percent.
About 5.3 million U.S. households have mortgages that are at least 20 percent higher than their home's value, the First American report says. Borrowers owing more than 120 percent of their home's value are the most likely to default, First American calculates.
The majority of underwater mortgages are in the following states:
Nevada: 65 percent of home owners are underwater
Arizona: 48 percent
Florida: 45 percent
Michigan: 37 percent
California: 35 percent
The report also notes that most U.S. homeowners have home equity, and nearly 24 million owner-occupied homes don't have any mortgage at all, according to the U.S. Census Bureau.
Source: The Wall Street Journal, Ruth Simon and James R. Hagerty (11/24/2009)
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We'll yes they are woes and yes some may be better. The question isn't what happening it's why is it happening. Tax credit expiring cause people to runs out and get a home under contract. They probably rushed to put a home under contract before the credit expires and settled in some cases.It then got extended for a few months and I predict a lot of contract will be withdrawn. I can see it in the activity since the announcement on my short sales. No one saw it before because you couldn't get a short sale closed before tax credit expired but now lots of showings. What does it men with the other ominous headlines of upside homeowners and more housing weakness recoded foreclosures. Well we having had the market reach equilibrium between the need for housing at a specific payment and the ability to qualify. SO we don't have the home prices equal to what people will pay on a monthly payment equaling what home cost or better can be sold for. What next more lost home to foreclosure and more banks looking lots more money. That what has to happen. In Utah a $400,000 home has to get down to a $280,000 home. Sure it use to be a $600,000 home in 2006. That has no bearing on it. It's simple supply and demand Economics 101. What do you do depending on what side buying or selling you make a plan that is best for you and you call me and execute it. That's the best I can do with out writing 10,000 words on both. I writ at 30 words a minute but I speak at upwards of 100 with gusts in the 130's LOL.