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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (49478)	3/4/2006 11:35:43 PM
From: John Vosilla	Respond to of 306849

"Notice that I am saying the AUCTION price and NOT what the house is worth. The auction price is likely to be below what the home is worth." An article in current issue of Money Magazine on that. In the bubble markets like California homes sell for very close to market value. In Ohio they sell for a 30% discount or more. Investor frenzy till now might have saved folks who lost their homes in very tight markets with few foreclosures. This has to change going forward.. I know one of my old investor buddies still buying at the courthouse steps has finally stopped attending as he has way too many homes he can't sell due to a rapidly slowing market with no buyers. His spreads were pretty tight I'd imagine he will not make profits on these. I imagine this coming downturn wipes out a lot of the investors and speculators in the game these days and leaves defaulting owners on the hook for huge amounts of money from the combination of values plummeting and discounts coming back in vogue on foreclosures in today's bubble markets..

To: Think4Yourself who wrote (49478)	3/5/2006 1:35:24 AM
From: Les H	Read Replies (1) \| Respond to of 306849

I'm starting to see a lot of new projects in the 150K to 250K range. There used to be very little inventory below 300-400K last summer. Flippers were buying condos purchased at pre-construction for 300-400K and listing them for 450-600K. I'm wondering whether these are primarily conversions of apartments or the counties were pressuring the builders to construct new homes that were actually affordable for startups.

To: Think4Yourself who wrote (49478)	3/5/2006 6:57:13 AM
From: bentway	Read Replies (1) \| Respond to of 306849

"The new bankruptcy law says most people can no longer walk away without paying the difference between the house auction proceeds (less court, sherrif, bank, and auctioneer fees) and what they owe." This is going to crush a lot of people. Houses usually auction off for far less than their actual worth, let alone what's owed on them, and it will only get worse as depreciation continues. As others here have said, these folks will probably be driven into a much expanded underground economy. From the opposite tack, if you've got some cash or healthy credit, there will be some real bargains to pick up!