Posted by janCA on 9/11/09 11:00am
Msg #303518

Reality

More foreclosures coming down the pipeline.

http://activerain.com/blogsview/1232639/millions-more-foreclosures-coming

Reply by Jim/AL on 9/11/09 12:03pm
Msg #303522

Sad, but true. Hopefully most of the forclosures remaining will be peoples 2nd or 3rd homes and will not put them out on the street.

Reply by janCA on 9/11/09 12:33pm
Msg #303531

The foreclosure moratorium for CA is up on the 15th of this month. What I hear, and this coming from my RE agent, is that the foreclosures will be the upper-end homes, anything over $300,000, which might not apply to Northern and Southern California, but it will for the central valley. Only 3% of them are selling right now. Many sellers still have their head in the sand when it comes to pricing their homes. My RE showed me a home a couple of weeks ago and said, this house is $300,000 overpriced. People are just not accepting what the reality of the market is today.

Reply by Linda Juenger on 9/11/09 2:01pm
Msg #303549

And what is the sq footage of that home that is $300,000 overpriced?

Reply by janCA on 9/11/09 2:12pm
Msg #303551

3350 sq. ft.

The comps in the area are showing the home should be right around $140 a sq. ft. The house is listed about $100 more per sq. ft.

Reply by JanetK_CA on 9/11/09 2:31pm
Msg #303554

"Recent reports have indicated that there are almost 3 million active, interest-only loans with a total value of almost $1 trillion, with loans of about $500 billion set to reset within the next 30 months. Then we have a large group of Option Arm mortgages set to recast during the next 2 years."

I was hoping these numbers would predict an increase in refi's, but it looks like too many of them won't be able to find new loans and will likely end up in foreclosure. Not a good sign for many sectors of the real estate market - including NSAs!