Owner-occupant sales stall while distressed sales plummet
invite response
2014 Jul 23, 10:46pm 716 views 2 comments
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John Bailo
2014 Jul 23, 11:52pm
I'm seeing this in my own search.
"Bank owned" now means tell me what you want to pay.
Eventually that will become the case for seller owned homes as the rush to market continues.
Tenpoundbass
2014 Jul 24, 12:33am
I'm just so glad I bought when I did. $160K for a house in a neighborhood where your average house like mine was selling for $79K just less than 9 years earlier, and was pretty much the historical range for at least 3 decades.
While $160K in my opinion was NOT the bottom of what my house should be worth, I just didn't have anymore fight left in me. Watching the RE market and having emotional skin baked into it, was just too stressful.
While I do believe my house should only be worth no more than $90K, provided we were also in a health unaltered economy of plentiful middle class work, and minimal price pressures on commodities. I still say that extra $70K was the best money I ever spent on my sanity health and nerves.
http://ochousingnews.com/blog/owner-occupant-sales-stall-distressed-sales-plummet/
Housing market optimists expected owner-occupants to pick up the slack from declining investor purchases. It isn’t happening.
In 2011, lenders aggressively pursued loan modifications to avoid foreclosures. They offered any deadbeat who would play along a sweetheart deal just to get some money back on otherwise non-performing loans. It beat the alternative of foreclosing on another property and selling it for a huge loss.
As this policy began working, the number of properties entering foreclosure began to drop considerably — the distress is still there, as the owner is unable or unwilling to make the contracted payment — but the negative results of this distress, delinquencies and foreclosures, were removed from the market. Some pundits have suggested this improvement comes from an improving economy and a lessening of financial distress among borrowers. That notion is complete and utter bullshit. Most of these Ponzi borrowers couldn’t afford the payments when times were good, and very few are better off today than they were 8 years ago.
Source: http://ochousingnews.com/blog/owner-occupant-sales-stall-distressed-sales-plummet/#ixzz38ODC1keX
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