I’m going to be honest with you, our market is going to get worse before it gets better. In my opinion, we are going to see prices drop, SLIGHTLY, in the next 3-6 months. Reason being, a tsunami of Bank Owned properties hitting the market.
The “Bail Out” Bond that was passed by the government postponed many home foreclosures during November and December. The government didn’t want people getting kicked out of their homes during the holidays. So for the last 2 months, 75% of foreclosures set to be auctioned off have been delayed and rescheduled in addition to those already set to be foreclosed. Here comes the title wave!
The problem is that the “vultures” at the courthouse buying these properties aren’t going to have enough money to buy them all. They will be even more picky and only buy the best deals, the rest are returned to the Banks possession and re-listed on the market. This is where the flooding begins. It would not be a surprise to see 150-200 properties a week NOT be purchased at the auction and end up as bank owned properties. A WEEK! On top of that, some bank owned properties are trashed, missing appliances or other fixtures in the house. All this is going to do is bring prices down even more. However, like I said earlier, I do not believe this wave will affect prices drastically. Houses for sale for $200k now will NOT drop to $150k. At most, I’d guess another 3-5% decrease County-wide.
The reason it won’t drop too much is that people are already starting to buy. If you’ve talked to me lately you’d know that I have been extremely busy showing property to prospective buyers. Interest rates are at historic lows right now and people are taking advantage!
Kevin Schubel
RE/MAX equity group, inc
360.936.7277
Kevin.Schubel@gmail.com
KevinSchubel.com
