We knew it was coming. It was only a matter of time. Banks have been holding back on foreclosing on dilinquent borrowers for several months but have now decided to open the floodgates and dump a boatload onto the market. The following is from the Florida Times Union dated 4/16/09:
Foreclosure-related notices went to 2,721 homes in metropolitan Jacksonville in March, a 29 percent increase from 2,107 in February and the highest mark recorded for the metropolitan area in at least five years, according to data released Thursday...
...Overall, foreclosures "came back with a vengeance" in March and are likely to keep rising, said Rick Sharga, RealtyTrac's senior vice president for marketing, the Associated Press reported.
So, is there anything good in this or is it all just bad and ugly? Certainly, at first glance it seems awful (and for those who are losing their homes, it is) but there really is a glimmer of hope in this... a silver lining, if you will. Not for the immediate future, perhaps, but this had to happen. And it will get worse before it gets better.
But things will get better!
As we all know, the housing market expanded way too fast and way, way too much. Anything that goes up that far and fast simply must come down. The pendulum swung forth and now it is swinging back. It will take time to settle back to a moderate swing.
Looking at it from a strictly unemotional standpoint we knew that these foreclosures were coming and that they would flood the market. We also know that this inventory (that has been sitting in a figurative warehouse for months) must be consumed before prices can begin to climb again.
So, what's the good news?
1) What an incredible opportunity to buy the home you've wanted but couldn't afford! Prices and interest rates have never been lower AND there are literally thousands of great homes on the market that the banks must unload.
2) The sooner all of this existing inventory is consumed, the sooner the market will begin to appreciate once again. And when the market turns, if all goes well, we should see a steady rate of appreciation that can be sustained for many years to come (at least until this generation passes or forgets about the past 3 years).
If you are a buyer, it's a no-brainer - call us and let us help you find the perfect home.
If you are a seller, it's a tougher decision to make. Give us a call and we'll help you analyze your personal situation and point out all the pros and cons of selling at this time. If you need to sell or have personal reasons for wanting to sell, there are very good reasons to move forward in spite of the market.
We promise not to pressure you, however, because we know that for some this is simply NOT the right time to sell. We're happy to give you our unbiased opinion and sound financial reasons to back up those opinions. The choice, of course, is yours and yours alone. We are simply here to help!
Tim and Susan Fennell
Realty World Executive Group, Inc.
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