people are excited this morning about the news that home prices have improved. I don't want to be pessimistic on good news, but........... as a lender I can tell you this, I have been doing a lot of work on short sales and bank owned properties. I have run into issues hitting value because of the lack of sales (I lend in many states and it does vary).
What I think I know is this information in and of itself does not get me fired up. Foreclosures will continue to flood the market. Buyers will continue to look for values and appraisers will continue to lean to the conservative side make wild adjustments for time on market etc.
THIS JUST IN:
The US economy will shrink far more than expected this year and will rebound much more slowly than forecast after that, according to a bleak new assessment by the White House Budget Office.
The federal government also faces exploding deficits and mounting debt over the next decade, far worse than what the Obama administration had estimated just a few months ago.
My primary thought when I started this was to ask - "what is a leading indicator"? For those of you that watch the markets (stock, treasuries and MBS) you know the WILD SWINGS. I laugh some days when the markets take a huge swing based on a comment. It used to be it took fundamentals to change, now news comes out the markets react then you give them a few hours or a few days and they correct or should I say go back to their previous levels.
That's about it, kind of a rant. My message is, don't believe all you see and hear. Make some educated opinions on what you know to be true. Continue to talk to folks you trust and gain wisdom where possible. Whether or not the market is at the bottom or is in a correction is impossible to say and does change from place to place. Take what today's is giving and make the best of it -
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