Here’s an interesting article about the housing market…they think prices will come down more due to the bulk of foreclosures that have yet to hit the market. While this may be true in certain areas around the country, we are fortunate in the Lake Sunapee Region that we have not encountered such a high concentration of bank owned properties. In our area I think prices have leveled out and will stay level for the next year or so. No crazy increases or decreases fore-scene.
What do you think? Do you agree, disagree, think I am way off base?
CNN Article- November Home Sales Leap
In addition, another spate of foreclosures could be hitting the market as a number of option-ARM mortgages are set to default.
All that may drive prices down, according to Shari Olefson, author of “Foreclosure Nation: Mortgaging the American Dream.” And the impact of these renewed price declines could again alter the market psychology.
“People think that prices have bottomed,” she said. “I don’t think they have. People will see price declines and that will discourage them from buying.”
Mike Larson, a real estate analyst with Weiss Research has preached all through the bust that price declines are what will “fix” the housing crisis.
“We needed to see prices fall to make ownership competitive with renting again, and to restore the normal relationship of house prices to income,” he said. “That has now happened and you’re seeing buyers come out of the woodwork as a result.”
Still, they will have to come out in large numbers to offset the inventory overhang in some of the worst markets, according to Olefson. In the Florida condo market, for example, there is a 35-to-40 month supply of units at the current rates of sale, she said.
Prices still almost certainly have further to fall.
