Waiting for a Market Comeback

By
Real Estate Agent with Intero Real Estate Services

Do you hear people say that they are waiting for the market comeback before making a move?  Some homeowners want to think that housing values will soon increase, hopefully bringing a market back into position of equal value to loan ratio. 

A vast majority of homeowners that are underwater are reluctant to selling their home for less than they paid for it and will behave irrationally by keeping their home on the market much too long, at times to their detriment in hopes of getting the most they can as they continue to wait for the market to turn around.  But, why should it matter if you sell your home for less, when you can buy your next home for less too?

Perhaps waiting for the market to adjust will steer your focus away from the benefits of the current interest rates.  With rates being as low as 4.50%, some economists say that refinancing existing home loans, or trading up to a bigger home for less money, can be a smart move-even if it means putting down more cash to get out of old mortgages.  Think of the benefits of taking out a new loan with far lower rates that can offer shorter repayment terms!   

Shifting your mind set when the market shifts can help you produce a return on your investment.  In the past, financial planners recommended financial market investments, but with it's volatility, devoting extra monies toward Real Estate can be considered your most sound investment.  My opinion is such that, the market has already made a comeback!  

 

 

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Ambassador
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Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I hear this talk from my investors. One has to live for today and press on in the real estate market.

Aug 06, 2010 04:06 AM #1
Rainmaker
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Bob Marsh
Warm Weather Real Estate - Mesa, AZ
Broker,480-529-2936, Warm Weather Real Estate

What if you want to sell your underwater home, but you do not qualify for a short sale? 

What if you can't refinance because the value is no longer there?

These are the unanswerable questions haunting those who say they have to wait.

I am all for a market shift to where there are no owners underwater.  In order to get there though, we need to re-evaluate the benefits of bank approved short sales.  When is that going to happen?

How many builders are we going to have to put out of business while they wait for the market to shift?

REALTORS, builders, bankers, lenders, money managers should all be calling for the market to shift and hope that is happens sooner than later.  This should be our song rather than 'go ahead and do it now while ir feels right'.  How can anything that is so wrong feel so right?

Aug 06, 2010 04:12 AM #2
Rainer
3,666
Kimberly Morgan
Intero Real Estate Services - Valencia, CA

I totally understand.  There are a lot of people that are so far under that they need an oxygen tank!  However, some homeowners are now finding that short sales and loan modifications are being considered by the banks, and if we choose to take advantage of what we can, we then will allow for a fresh start (even if it means starting over). = /

I'm just saying that paralysis from fear or lack of direction should be avoided. Sometimes it is necessary to get comfortable with dis-comfort....in this case to help homeowners avoid Foreclosure.

Aug 06, 2010 04:36 AM #3
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Rainer
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Kimberly Morgan

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