Everyday I read all of the predictions about the markets bottoming. For the most part these ‘prediction articles’ are looking at the past…past home sales, past market data etc. Of course, sold information is important.
The unique advantage that we have is that HREU has literally thousands of Students who are telling us what is really going on on their markets. Not what was but, what they will be.
For example:
We are hearing from many of our top REO Realtor Coaching Students that the REO companies are flooded with new REOs. So many in fact that they are actually having problems assigning the listings. Real story…had a student tell me the other day that his C21 Broker was told by FHA to ‘Gear Up’ for a massive number of REO assignments.
Additionally, we all know that sellers are still reluctant to drop prices. All the while the market continues to make their homes worth less. If a seller absolutely doesn’t have to sell in this market…they are nuts to have their homes for sale. Talk about swimming against the tide!
Looking back….prices of U.S. single-family homes plunged a record 15.4 percent in the second quarter from a year earlier, surpassing the steep drop in the first quarter, according to the Standard & Poor’s/Case Shiller national home price index reported on Tuesday…
COMMENTS: GARY SHILLING… “It’s more of the same. We are looking for the Case-Shiller measure to eventually show a 40 percent total decline, peak to trough. The key point is we are a long way from bottoming out.
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The basic problem is excess inventories of new unsold homes. They are the mortal enemy of prices. We estimate that 2 million houses were built during the boom, and we’ve only worked that excess down to 1.8 million as of the beginning of 2008. We think we will see prices falling until the fourth quarter of 2010.
There will be a lot more write-downs at financial institutions and a lot more problems for consumers. They have run out of borrowing power, principally because they can no longer rely on home equity.”
Some info from Reuters
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Tags: BPO, harris real estate university, real estate coach, real estate coaching, real estate training, realtor coaching, reo
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Seems like a great time to buy (within the next few months to year). I really don’t know what to expect in the next couple years since there have been a few REO’s I’ve placed an offer on in San Diego that were out bidded, even when I bid 20K over. It’ll be interesting to see how things play out.