Inventory continues to pile up. We now have a new record of single family homes for sale on the market today:
4,218 listing(s) found.
This year the spring selling season was a bust; now the summer selling season appears to be a bust. Whatever does not sell in the next 45 days will have to wait through a long fall and winter before next years spring selling season.
IMO only the most agressive of sellers is going to move their product in the face of significant supply, declining demand and tightening credit.
Good luck FB's!
3 comments:
IMO only the most aggressive of sellers is going to move their product in the face of significant supply, declining demand and tightening credit.
This is an important point. There are three houses for sale in the neighborhood this summer. They are priced at least a $100,000 too high.
If they want to sell, they have to cut the price. Who wants to wait until 2008?
WoW!!! That's a ton of homes! And I'm sure that's not counting new construction either correct?!
Hey Crispy,
it would be interesting to know how many people in the last few years used creative financing here in bakers and how many used traditional fixed rate loans...
Is there any way to find this info??
JiM
I think the large number of defaults recently and large number of subprime's moving out of town show that creative financing was used a lot. People usually don't default on homes unless A. They lose their job or B. Their payment goes up or C. They start blowing money on gambling or Cocaine...
Can't think of any other reason. So here's my analysis. Jobs are looking good in Bako and you can't really gamble here and most people can't afford cocaine...but they can barely afford a $400,000 mortgage at the teaser rate. So I'm going with B.
On topic, I'm sure the number of houses on the market have something to do with adjustable "fuzzy math" mortgage rates going up. Now that the payment has ballooned they're hoping to get out before defaulting. Looks like it's only going to get worse.
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