By: michael

michael — Wed, 16 Sep 2009 02:25:25 +0000

There is little doubt that there will be continued downward momentum of home prices. The temporary increase in buying activity that is now occurring in some areas is mostly due to government intervention through various programs and investors who believe this to be a buying opportunity; NOT because there has been any improvement in the underlying cause of the crash. This will prove to be a false plateau before the plunge in prices begins in earnest once again. Unlike some who rely on hope and wishes for a recovery there are real reasons why one is not coming soon; some of which are continued job loss, continued defaults and panic selling in neighborhoods when sellers begin competing for buyers in earnest. Also we are just at the beginning of the Commercial Real estate crash and it’s effects on the job market and the economy as well. And finally NOTHING has been done that has improved the situation regarding the lowered value of the CDO’s(collateralized debt obligations) held by banks as well as the CDS’s(credit default swaps) held by the likes of AIG. These are still waiting in the wings and nothing has been done to resolve this gigantic financial problem that is at the heart of the current downturn.

By: Marcia

Marcia — Fri, 01 May 2009 19:15:05 +0000

I’m a real estate agent in the Napa Valley, CA. There are so many buyers right now – multiple offers w/ 15 offers – that more homes for sale will probably not lower our market but rather stabilize it. I have 10 buyers all ready to go right now under $400k – some all cash. We need to balance supply/demand. So no, I do not believe it will lower prices in our market. It’s only the really awful homes w/ illegal conversions and/or really bad locations that are still on the market. (Or short sales as they take forever to close.)

Comments on: As the Foreclosure Moratorium is Lifted, What Next?

By: michael

By: Marcia