Profile picture for Kriston G Ashley

Have we seen the worst of this market? Who thinks we are on a decline and who thinks an incline...

  • August 02 2011 - Greensboro
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (9)

Greenville, NC = INCLINE!
  • June 06 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

There's no real right or wrong answer to this question. The answer is going to depend on what area you are located in.

Sells are strong, prices are stable depending on the area. Some areas are stable, some are on the decline and some are on the incline.

So basically it depends on your area.
  • June 01 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for BklynBlue
If you would have asked me this question before the summer I may have thought we saw the bottom.  As more and more economic news is released here and abroad, coupled with current unemployment rates and other data, I would say we are in for more declines.
  • August 04 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

decline
  • August 03 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Blue in d Nile
Of course there is logic to it.  You just have your eyes closed.

1) The mortgage insurance covers the loss, so they don't care how bad the condition is when it finally gets to market.

2) Several of the bank bail out legislative acts allows them to collect up to 95% of the value from the government, thus there is an incentive to hold the properties back.

3) If they liquidate them at a loss, they have to take the book loss at the time of liquidation, which means they need more reserves on hand, so they are better off carrying the higher value on the books even though no money is coming in for the debt.

4) In some cases some money is coming in for the debt, just not what the loan terms were, so some income from the debt is better than nothing.

5) If they had to sell them all at once, they would need more staffing, which would increase overhead costs.

6) If they had to liquidate them all at once, there wouldn't be sufficient demand, and it would drive values down for not only the distressed properties, but others as well.

7) Some of the paperwork for loans packaged as mortgage backed securities got a little messy, so to avoid problems in the transaction, it takes longer to get the paperwork ready.

So, doing anything other than what they are doing is what wouldn't make any sense.  And this should be exceptionally obvious to any agent with any experience.
  • August 03 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Kriston G Ashley

I buy courthouse foreclosures and there have been some interesting trends as of late. There is a lot of inventory that they are holding onto. I am sure they don't want to flood the market and drive down prices. In the last few weeks they are starting to release more inventory. This makes me think they may try to trickle the homes out at a slower pace. This creates both a positive and negative effect. Positively helps values not decrease as quickly and will keep appraised values up. Negatively effects the condition of the home, which inevitably will lower the price even more for the deferred maintenace aspect. There are a lot of homes still out there and the banks don't see to be in a hurry. My friend and others I know did a deed release and gave the property back to the bank over 2 years ago, and it just went to sale! Now that's just crazy. In another case, the banks are leaving tenants in a home and selling it at auction, as -is, no inspections, no viewings, buy site unseen. There is no logic to this ..

  • August 02 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Sharon Lewis
In the Triangle area, we are seeing homes move in different pockets at different price ranges, we are even seeing bidding wars.In this area, I believe it gets down to, price, quality and location.
  • August 02 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for hpvanc
I think we are in a cycle like Japan has been in since 1989.  The last cycle like this in the US ran from 1873-1900 and is referred to in hindsight as both a golden age and the Great Sag.  You can do the math on approximately how many years remain before property values start climbing again.
  • August 02 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I think we will still some price declines in most price points.  We are seeing a lot of action in the $150,000 to $300,000 price range.
  • August 02 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.