Remember when the foreclosures first started hitting the market and investors clamored on the court house steps? Where did everybody go? You know what that means? I think it means hey... now is the REAL time to buy! The only folks you see today on the court house steps are the banks buying back the loans. Of-coarse that raises another issue, or sad tale for those insurance companies they're looking to have pay off the loan. That's why you'll see the banks buy back at $114,000.00 and put it on the market for $100,000.00 a month later. They're getting their money from the PMI Insurance and then looking for a quick buck by selling low. Meanwhile yet another institution is down the drain. The insurance companies. You know... the ones whose stock was at one time $68.00 a share and now is $5.00 a share? Yeah... those guys. The same ones that only had to maintain 35% of their guarantee liquid or in the bank are now going belly up as well.
What this means though, I think, is the beginning of the end, AND unbelievable deals now and in the next coming year as the market attempts to pull out, and pull out it will. (Thanks in part to first time home owners) Builders are not building and dealing to unload everything they've got, which means new construction will be eight months to a year out once things begin to turn around. Pre-existing home sales will therefore be first to pick us back up and we'll start to gradually reverse the inventory to sales ratios. Hey... but what do I know? I'm just a Real Estate agent! :-)
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The market is going to turn around this year in quite a few markets. I have been tracking data in a few places and their market are already starting to turn. Vacation spots seem to be flattening out now and will turn upwards this year- in my humble opinion.