May 14, 2008
Waves
We’re seeing signs that the market is starting to level off a bit. Slight increase in demand and slightly lower inventory are positive indicators of things starting to shape up….for now.
On Sunday Jon Lanser reported, “Online market tracker Zillow reported that roughly half of O.C. homeowners who bought their residence in 2005 through 2007 owe more for their mortgage than their home is now worth.”
For the moment, this is okay. But it’s a time bomb waiting to happen. As each month passes these loans inch closer and closer to their low interest teaser rates ending. That said, I think we need to brace ourselves for what will probably be the next wave of reduced value of our homes. Unless the government’s program works something spectacular we could be in for a second wave of trouble trailing at the end of 2008 and through 2009 as many of these homes could potentially slip into foreclosure.
So it’s time to buoy out and wait for the next wave.
Talyssa said:
I love you, Redfinblogger-Sheila! you look at ALL the data and make reasonable judgements - even when its just ‘wait and see’.
the spectacular government program results don’t seem too likely right now. I think we might see that second wave. but no one can ever really say for sure, right?
May 14, 2008 4:06 PM
Sheila said:
Taylssa- Thanks for the encouragement. We try to just tell it like it is as bloggers!
I’m not too impressed by the government program - I just don’t think the results are going to be as wonderful as promised. Not to mention, many people won’t be really feeling the heat until early 2009 - and we’ll have a change of office then which could shake things up a bit. There are many unknowns going into this!
May 15, 2008 6:57 AM