Creepy Stability
Don’t expect housing prices to decline again any time soon, according to Barclays. They claim that the stabilization that has begun to creep in is here to stay. However, we should expect a small drop up ahead based on the current supply of foreclosures.
Can the current housing market handle these new foreclosures? What sort of a decline can we expect and for how long?
They claim a “limited” drop of 5% will be the official bottom of the housing market before sustained gains appear. They credit loan modification programs (and, of course, short sales!) with spreading out the impact of these foreclosures over a few years.
But there’s a big difference between stability and appreciation. We can’t expect significant gains any time soon. So feel free to get your clients comfortable with lowered prices than they’d hope for.
How can we ensure that both sides of the equation benefit? Foreclosures on the one hand need to slow down, but home purchases need to increase also. It’s a fine line (like most things in this business).
What are your thoughts on this? How can we make sure we all make a killing on our investments, and still manage to find great deals? Working together we can make sure we all benefit.
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Eric Hiltner
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http://www.cc3.debtfreerights.com Carol Cheshire
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http://SUNSHINEINVESTMENTS G.Stan Lenko
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http://bowmanres.com maria bowman
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Eldee
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Bonnie Gentry

