Massive Supply of Homes in Foreclosure Process Will Drive Down Home Prices
The Atlanta Business Chronicle is reporting a the looming oversupply of houses in the foreclosure process is sure to drive down home prices. Citing a study by John Burns Real Estate Consulting, Inc, ABC says the 13.4 million of the country's 44.7 million home loan mortgages are delinquent.
Housing Inventory Was temporarily Driven Down By the Expiring Federal Tax Credit
Some economist were beginning to see light at the end of the tunnel as the federal tax credit for first time home buyers stimulated buying and inventory levels started to drop. The study by John Burns says this drop is temporary and is in fact just the lull before the storm:
"Although many believe the national housing market has bottomed, it will likely continue to lag with a massive oversupply of homes this year, according to report published by John Burns Real Estate Consulting Inc.
The report, published earlier this month, said many people are unaware of the massive supply of homes that are already in the foreclosure process that will certainly drive home prices down even further when they are sold.
Also, banks have been slow to foreclose on homes and sell them, which has resulted in few distressed sales in comparison to the actual level of distress in the market. This delay in REO sales, along with historically low mortgage rates and an $8,000 tax credit, has helped to stabilize the housing market - temporarily" Report: Oversupply of foreclosures to drive down house pricesby Crystal Jarvix The Atlanta Business Chronicle
SELLERS Should Not Be Too Picky If An Offer Comes In
If you are a seller and receive an offer to purchase your home, do not over negotiate the contract. Sellers should not be too picky when an offer comes in because the buyer as lots of other options right now. The next house down the list was probably a close second. Over negotiate the offer and that buyer may jump ship to the next home.
If you are interested in selling your home in a challenging real estate market, call Sally English at 770-939-3174. EMAIL Sally English and the English Team at sallyenglish@englishteam.com for excellent real estate advice. We have a track record of success.
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Great post and I know one friend of mine says we can expect to start seeing thme shortly.