How many “For Sale” signs in your neighborhood?
I’m witnessing desparation in an area with the best schools, conveniences, close to major traffic routes to employment, secure, well built, well maintained newer construction homes.
The owners are going back to mom & dad’s or to schools for more education as they can still get $$ for this.
What kind of a life is left after foreclosure for them? Mom & dad aren’t going to make it themselves and we all know the lengths that apply to repayment of education loans today.
Most of these people bought with little down – flex mortgages that work well when housing was doing what it always did. Most had vision to see turning 3-4 times in 12-15 years, banking the profits until there was plenty for a cash purchase of a “dream” home or two.
Who can make money from this disaster?
well on the block i live on, there are about 32 homes…… and i can recall seeing “for sale” signs in atleast 6 yards. i never really took the time to count them all. But when I go for my morning run, i’ll make it my business to count how many I see in the 10 block radius I run.
There are currently no for sale signs on my block. There is one on the next block over, and a new development going in three blocks away. There is some commercial property for sale a few blocks away (several parcels). I live in a stable neighborhood in the midwest.
You do not say how many are for sale in your neighborhood. You imply that they are all due to foreclosure. The foreclosure situation is very bad in some areas but in no area would it be likely to have a noticeable impact in terms of for sale signs. The rate is much less than 1% of all mortgages in all homes. The foreclosure rate is highest in subprime mortgages where it is around 2.5% The subprime market is less than 20% of the market. See this Wall Street Journal article from Aug. 28, 2007 for more info:http://online.wsj.com/article/SB118835560053011923.html?mod=googlenews_wsj
If you are seeing a downturn in your real estate market, that could account for a large number of for sale signs. If you are seeing an upturn, that is also a reason for a large number of for sale signs. There can be any number of reasons, but if you are not planning on moving in the next few years, your investment in your home will pay off. Most people buy real estate for the long term and generally should not panic due to market adjustments.
Good luck.