According to the Star-Telegram, lenders in Southern California are scooping up foreclosed properties at a rate much faster then they can get rid of these homes. “At some point — maybe this fall, maybe in 2008 — the lenders’ inventories will grow so large that they will have no choice but to cut prices aggressively, many agents and analysts predict. That, in turn, will put more pressure on individual sellers, who will have to reduce prices if they want to find a buyer. As values fall, more people could lose their houses, which will swell the lenders’ inventories even more.”
Has all of the predicted doom and gloom in housing become a reality?
I’ve been saying for years now that this overheated market simply cannot sustain itself. I’ve shared with you stories of policemen and others buying million dollar homes in the Los Angeles area, which they had no business doing. This has been happening around the country, and these stories have all been warnings that the perfect storm was on its way.
It looks like we’re in the heart of the storm!
I hope to cover over the next few weeks and months how people can best deal with this market, and what, I believe, has led to the current financial crisis. This housing market will hurt many people, but you don’t have to be a victim! We’ll help you learn to get out before it is too late. We’ll help you profit from the massive explosion in foreclosures. We’ll help you become a contrarian investor that makes sensible decisions that will not only help you save your credit, but that will potentially save your financial future as a whole.
Stay tuned . . .
We’re not going to leave you out there on your own through this impending housing (and possibly economic) crash.
Article Author:
Joshua DorkinJoshua has written 539 articles for us.
Visit Joshua's Website: http://www.biggerpockets.com/
BiggerPockets.com was founded by Joshua Reed Dorkin in August 2004. An entrepreneur, web designer, real estate investor, and one-time realtor, Joshua was not satisfied by the online offerings of other real estate sites out there, and decided to build one himself. Mr. Dorkin's vision for BiggerPockets has helped to propel it into becoming one of the top real estate destinations online. His vision for the site and its future has brought national press attention to both Mr. Dorkin and to BiggerPockets.
Joshua Dorkin
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I’m staying tuned. I’m ready to hear what you have to say about the market and where it’s going.
Looking forward to hear you want to say about this market.
Not good at all. Bring on the facts please.
Hi,
This is a good post. It gives me the information I was in search of.
I have a small query – I don’t have any spam pages or websites. Still I am encountered with messages like “possible spam”, “Spam”, and so.
Do you have any idea why it’s such?
Thanks.
Here in Las Vegas the court house step investors are getting stuff for 50 – 70 cents on the dollar. My insiders in Chicago tell me their foreclosure market is down to 40-60 cents on the dollar! Those are serious discounts. In three years we’ll all be looking back talking about the great buying opportunities we may have missed…
Yes, the housing doom has arrived and everybody will have to deal with the consequences. For some it is really going to be the time to buy and grab bargains that otherwise would not be there. Unfortunately for others the loss of money will be inevitable and will bring many people one step beyond the border, into insolvency and bankruptcy.
The sub prime market is the symptom of an unhealthy state and only a stricter regulation will bring some improvement and pave the way back to stability.
Things are looking up around here. With strong stable appreciation rates of 5-10% over the last few years the markets still pretty healthy. Only the idiots who can’t do a simple projection of payments/budgeting are stuck. Unfortunately no one can get their hands on money to buy anything because of the runup on prices out on the west coast where all of the capital has been sucked up into illiquid houses. Note just because something’s selling for 60 cents on the dollar doesn’t necessarily make it a good deal, because the in past someone probably paid a buck thirty five for something that should have cost a dollar based on rents.
Joshua-
Being that i am responding to this post several months late. What are your thoughts on the government stepping? Do you think is the start of the market turing around or do you think that there is still more to come