….given the combination of the expiration of the home buyer tax credit and the increasing number of loans moving to final foreclosure, we knew that home prices overall would take a hit, but it would take a while.
Well we’re here.
Two new reports out today prove the consequences of oversupply of organic inventory (12.5 months on existing homes in July according to the National Association of Realtors) and the shadow inventory of foreclosed properties (estimates vary widely and wildly). CoreLogic’s Home Price Index shows home prices “flat” in July as transaction volume continues to decline. “This was the first time in five months that no year-over-year gains were reported,” according to the release. In June, prices were up 2.4 percent year over year. In addition, “36 states experienced price declines in July, twice the number in May and the highest number since last November when prices nationally were still declining.”
[blockquote] They say today’s buyers are only looking for great deals, so if you price the home at its actual value, nobody’s interested. You have to go below. [/blockquote]
Value to whom?
Actual value= what someone will acually pay. Not appraised value. Free market.
Since we don’t plan to sell our home (it’s our retirement home), we aren’t concerned about its market value.
The sad part is that home values even where they are now are still valued too high. There is a vast store of foreclosed properties that the banks are sitting on, hoping for taxpayer bailout to get 100 cents on the dollar. Should November end the “bail out era” and the banks have to release this inventory, prices will drop even further.
#1, #2
Hilarious, that a real estate/business reporter has no idea how value is determined in a market economy.
this sort of over valuing is so commonplace on the Carolina coast – you get homes dumped or auctioned off for less than $1.5 million, yet the MLS still shows homes, some of them inferior to the auctioned homes, listed for $2 million and up. And they just sit there on the market for literally years….
Not to worry! On another thread, I have been reassured by a supporter of the current administration that the Great Recession ended in 2009. We can all breathe a sigh of relief now as we watch the recovery in action. /sarc