If It’s Not a Foreclosure - It’s Still Going to Take a Steep Pricing Cut
With prices still dropping, and the foreclosure pipeline filling up again, this summer is predicted to bring many desperate sellers to market. They’ll have to be very aggressive in their pricing to compete with foreclosure and short sale inventory. Reasons that some expect summer blow-out prices include:
Bloated inventory – with the national average showing around 8 months of inventory on the market, it’s a buyers’ market for sure. With foreclosures selling for as much as a 50% discount, normal sellers will need to start out at really deep discounts to their desired selling prices.
Accelerating price drops – most areas are back to 2002 pricing, with some of the worst-hit approaching 2000 price levels. Sellers are beginning to get anxious and may flood the market to avoid further equity depression.
Tight credit – with fully a third or more of the population unable to qualify for a mortgage right now, there is little buyer pressure.
Unemployment – though the jobs picture has been improving, it’s not happening fast enough. With unemployment at around 9%, there is little buying sentiment out there.
With little fear on the part of buyers that prices are going to turn around anytime soon, and the summer buying season approaching, it’s going to be an interesting summer housing season.
With prices still dropping, and the foreclosure pipeline filling up again, this summer is predicted to bring many desperate sellers to market. They’ll have to be very aggressive in their pricing to compete with foreclosure and short sale inventory. Reasons that some expect summer blow-out prices include:
Bloated inventory – with the national average showing around 8 months of inventory on the market, it’s a buyers’ market for sure. With foreclosures selling for as much as a 50% discount, normal sellers will need to start out at really deep discounts to their desired selling prices.
Accelerating price drops – most areas are back to 2002 pricing, with some of the worst-hit approaching 2000 price levels. Sellers are beginning to get anxious and may flood the market to avoid further equity depression.
Tight credit – with fully a third or more of the population unable to qualify for a mortgage right now, there is little buyer pressure.
Unemployment – though the jobs picture has been improving, it’s not happening fast enough. With unemployment at around 9%, there is little buying sentiment out there.
With little fear on the part of buyers that prices are going to turn around anytime soon, and the summer buying season approaching, it’s going to be an interesting summer housing season.