What does a “Market turn around” mean?
April 30th, 2008 . by Mike Kelly I always wonder what the consumer and/or talking heads mean by the “Market turning around”? What? Back to the days of 20% yearly appreciation? Affordablity? Sane underwiriting guidelines? I heard a talking head stating the Fed was going to try and stop the “spiral downward of home prices”. Huh? The fed is NOT going to restore property values to a level where those now facing the ravages of “neg-am” loans, option arms payments and nothing down scenarios will stay put in their homes. These folks, the vast majority who should NOT have been allowed to buy homes to begin with, are looking at increased loan payments with falling values and thinking, “Why am I paying this monthly payment to live here!??” Your loan adjusts, you’re paying $4,000 per month to live in a modest production style home while you could “rent” a much nicer place with litle or no reponsibiliies. They move! They bail! It’s O.K. to bail now! It’s socially acceptable! I’m a victim of bad Realtors, lenders, Wall Street, everyone but my own actions.
That being said–is it a bad time to buy when the REO’s I have listed get 15-20 offers and overbid on the home driving the cost skyward? Should we allow 3% down with 580 FICO scores? Sub-prime scammers on the prowl again? Nope!! FHA!!
I got news for y’all–it’s the wild, wild, West out here in the Greatest State of California. The timid need not apply!
