Real estate research and marketing firm Trulia said employment figures improved slightly at the end of 2011, making it possible for more borrowers to pay their mortgages next year. While Trulia says this trend could reduce 2012 delinquencies, the company expects foreclosures to continue to climb as banks sort through a backlog of distressed properties and foreclosures that stalled in the wake of robo-signing and increased regulatory oversight. Trulia said an increase in “foreclosures will depress prices for several reasons — foreclosed homes are often sold at a discount and used as comps for non-distressed homes.”
Foreclosures, divorces and the few job related relocations make up the vast majority of work in my area. We get a few people up-sizing due to value but not like the boom of 2005/2006
People here are actually having bidding wars on Foreclosed homes…the banks want $150K and they end up selling for $275K due to bidding wars…gotta love SW Florida…
It’s clear, one of the world’s safest havens for investment is U.S. real estate. Foreigners love it.
any shrink would label the “real estate market” as certifiably insane. historically, any investment in RE is a horrible investment and actually pays less return than passbook savings. according to the property appraiser, my home went from 850k in 05 to 328k in 11 in value. property taxes went from 9280 in 05 to 7300 in 11. so, in last six years, I lost :
522,000 value + 49,740 avg taxes + 16,800 insurance + 5,000 repairs or 593,540 or 98,923/yr. If I had rented at 1500/mo I would have spent 108,000 or 18,000/yr. Invested savings of 80,923/yr @4% and simple math shows I would have over $558k.
I know the example is impossible to prove but with wild fluctuations in the market which happen all the time, how on earth can anyone say RE is a good investment? Its a gamblers investment and few make money.