Pretty interesting, especially seeing as the really big jumps in ARM’s, including those ridiculous Minimum ARM’s is due until the end of June as I understand.
There are lots of folks in my area that were buying homes that they could not really afford and using the ARM loans to do it, now they are dropping like flies. There are far more homes on the market then there was this time last year. It would seem to be a buyers market, but the problem is everyone is asking for the prices they could have received 1.5 years ago. Even the new construction folks have dropped the prices dramatically trying to fill the homes they have already built and without much success.
What is the consensus on how this will affect home sales?
In my area resale homes are on the market an average of 59 days as compared to a year and a half ago the average was 8-12 days.
I think it is going to be ugly for a while until the market balances out.
Price reductions are inevitable. Resistance is futile. Many RE agents will expire before that happens. The surviving inspector force will be busier than ever when the big rebound comes. Fly-by-nite mortgage financers will go belly up. Cycles are influenced by many factors. This is just another one.