I enjoy watching all of the interesting posts that come through this website. There's never a shortage of great insight and advice. But it seems that lately there have been a lot of posts regarding this upcoming mortgage defaults. They are all predicting another depression in home prices and a major uptick in inventory.
I saw hog wash. When we fell into the mess we are in now, that banks and prognosticators had their heads in the sand and refused to addres the issue until things got to where they are now. Everyone is well aware of the large amount of ALT-A loans coming due. So are the banks. But let's say, just for kicks, that nothing is done. Do people really think the banks will simply flood the market with foreclosed homes?
Things are moving in the right direction and you can believe the banks will do everything in their power to make sure this continues. Statistics from the Southern Twin Cities Associaion of Realtors recently sent out updated stats in the Minnesota Metro area. As of September 2009, the absorption rate is down to 6.6 months. This is down from 9.9 months this time last year. And us Realtors are seeing it in the market. There's les to look at. Our listings are starting to sell. Especially the non-foreclosure homes.
Along with a number of other economic indicators that I won't get into, this country is making large strides to pull out of this recession. So put your mind at ease. Quit scaring your friends and clients. Now is the best time to take advantage of a down market. If people are going to wait for this next wave to come, they will be in for a big surprise when it doesn't happen and they miss the boat!
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