Hollywood, CA - Though the affordability index is getting to more palatable levels in most markets, the back log of sneaky super secret bank owned foreclosure homes makes the Los Angeles Realtor who doesn't have their head in the sand a bit shaky in the knees.
A great article that linked the Adjustable Rate Mortgages as a percentage of the market tied to the predictability of housing prices shows that we will not as a nation see a great turn around in the housing market in the near future. Prices will continue the wavy lines of a little up and down for the next few years because of the failing jobs market... and... there is still some clearing out to do in the way of inventory.
The banks gathered unto themselves a large amount of homes that they have not gotten rid of... yet. It's easy to be something they don't want to be, viz. property owners, when the taxpayer allays their financial woes with the infusion of cash to said banks. Without the cash, banks would be forced to get rid of non-performing assets, i.e. the empty houses, and the market would be more along it's natural correction of the boom and bust cycle.
Artificial market controls have lengthened the fall to what is more like the slow decent of a pin pricked hot air balloon that did not pop, rather that a gun shot one. Thought the intention may have been righteous, there is the unintended consequence of a longer slog through the mud of unsure footing in housing prices coupled with a slower return to normality. No good deed goes unpunished.
The market correction that the hyper inflated prices and exuberance from near zero interest rates begged is yet to be fully expressed.
The market will continue to falter, as prices have not been given their rational adjustment to a price based on affordability, tied to jobs, tied to lending standards that require more than the ability to fog a mirror.
The year 2011 will be an interesting one for Los Angeles Realtors, as well as interesting for other markets. There will continue to be many short sales and bank involved sales, more hidden inventory now exposed that will have lain dormant and in disrepair, needing further discount in price to find its' level.
Is it doomsday? Hardly. Strong Los Angeles Realtors, strong Los Angeles real estate markets with good schools and established neighborhoods will stand better than others. Where there were many bad loans there will be many troubled home owners.
If you need to know what your home is worth or search for foreclosures go to www.findingthehomebeautiful.com
Further information is available at www.hollywooddailyhomes.com
Thanks for reading this.
Vince McEveety
Vincent McEveety, Realtor Los Angeles, specializes in loan modification assistance and short sales in Hollywood California. Hollywood Loan Modification Help, Hollywood Short Sales. Hollywood Short Sale Realtor. Short Sale Realtor. Hollywood CA Short Sales. Hollywood Lofts. Hollywood Realtor. the Realtor Los Angeles.
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