Stil a bit early - Posted by dealmaker
Posted by dealmaker on July 11, 2007 at 06:33:01:
Bankers, like everyone else have short memories. I lived through this in the 80s in Houston. I think we’re about a year away, maybe more, from seeing any noticeable drop in prices. Your neighborhood may be worse though.
Nationwide the average cost (to the lender) of a foreclosure is about $73K, yes SEVENTY THREE THOUSAND. As more of them snap to that they will become a little looser with short sales.
For now the best deals that I can see (looking at several markets around the country) are;
Newbie “investors” who learned about the big profits in “preconstruction” and put big deposits on places that have dropped 25% now that they’re near completion. And,
Builders who are sitting on completed inventory and are getting hammered as their constructio loans turn over each month.
I recently looked at a completed new house, the “investor” had put 10% down, closed and was sitting on a $1700/month P&I, without the cash to landscape or do window coverings.
We’re somewhat interested as our next home, so we’re considering making an offer based on him finishing the yard and windows (he’ll have to do it on credit cards-if they’re not full). I might be able to cut a better deal with the builder, but this is a nice floorplan on the 5th tee box!
Or we can wait, which is what I advise people. Most markets I’ve looked at have DOM going up, listings going up and monthly sales going down. The market we’re looking hard at has 14 months of inventory at current rates! Shweeeet!