Congress, NAR, HOPE for Homeowners, TARP, and stimulus, everyone has a hand in the pot, so what will be the future outcome of the housing market?
Rates are incredibly low right now, approaching nil, and many people think we will have a refinance boom. Even though the majority of home owners did so in 02-04 and locked in when rates were near 1%. If you were one of the many unfortunate souls who bought a house from say 05-07, chances are, you are underwater. As of late real estate prices haven't caught the escalator like they did ever since, what the 50's?
Naturally, refi applications are going to sky rocket over the coming months. However, the only people who will make money off of this development are the appraisers much to the chagrin of all the homeowners and their "McMansions."
Most will probably get declined and in turn will lead to a whole new round of underwater mortgage owners turning in their keys to the banks. This will send home values getting marked down, across the board mind you, as the appraisers run around, delivering bad news.
My point is, from what I can deduce: The “refinance boom” is a fraud. Anyone promoting this fairy tale in a most egregious way, will be midget stomped. (I don't know, sounds frightening.)
In light of all this doom and gloom, here is the upside. I want the housing prices to decline until... let's say, early 2010. Then I will have myself positioned to buy, in anticipation of market lows, and in turn will be ready to ride that escalator, hopefully up.
2 comments:
we're starting to look for a second house down in roseville, rocklin, etc. we will keep the mountain house and also owner-occupy the valley house in times of snow, when we have lots of errands to run i have an early departure for a biz trip, etc. prices are pretty good right now (we're looking between $250-300k) and lots of short sales are available. we would have to see if the bank would prequal us and i don't want to put much down. whaddya think about that idea, counselor?
show us the way.
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