Real Estate sales are improving?
THE GOOD NEWS: The inventory of previously owned homes on the market dropped to 3.7 million in March from 3.8 million a month earlier and this is down from 4.6 million in the middle of 2008.
THE BAD NEWS: U.S. banks held $26.6 billion of repossessed real estate at the end of 2008, more than doubling from a year earlier, according to the Federal Deposit Insurance Corp. in Washington. The banking industry lost $26.2 billion in the fourth quarter, the largest loss in FDIC records.
Until the banks sell off this massive inventory, real estate sales will continue on the pace seen in the past six months. Instead of giving the banks loans at less than 1% to prop them up, the Federal Government should offer to buyers of bank owned property mortgages at 1% through FNMA or FHA. Taking this property off the market will increase the value of properties owned by the general public and improve the balance sheets of the banks. It’s a ‘win win’ situation.
May 21st, 2009 at 10:57 pm
I’m currently trying to buy a foreclosed house and would sure appreciate a 1% loan (could but a lot more of a house…..)
But, as everyone snaps up the foreclosed houses , wouldn’t it hurt the value of the “general public” houses you refer to????
May 22nd, 2009 at 2:35 pm
Two points:
1. if the current foreclosed houses are not snapped up now, they will eventually sell for even less next year hurting house values
2. the larger the inventory of unsold properties, the lower the values will go.
June 14th, 2009 at 11:31 pm
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June 15th, 2009 at 11:34 pm
Either that or the government should buy up the 26 billion in properties and take them off the market. Save them for low income housing or recycle them, taking them off the market.
August 24th, 2009 at 1:36 am
Excellet View!Great Article.This helps to get good lead in the Market of Real Estate.Thank you.
September 1st, 2009 at 10:47 am
The housing market is making a turn. The only homes still are record are still the junk no one wanted in a good market. Junk is still junk but it still counts and throws off the numbers. Don’t be fooled.