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It’s Becoming a Buyer’s Market!
By JLP | August 13, 2008
There’s one way to interpret this quote from a front page article ($) in today’s Wall Street Journal:
Stuck with a growing glut of foreclosed houses, banks and investors are shedding them at increasingly steep losses, potentially adding to the banking industry’s red ink this year.
Banks are selling foreclosed homes in some cases for less than half the price they fetched two or three years ago. The cuts are coming as the U.S. banking sector, slogging through its worst crisis in decades, bites the bullet out of fear that prices will keep falling.
Of course some of those homes had doubled in price over a couple of year’s time so they’re really just settling back down to reality. Regardless, it’s becoming a home buyer’s market! Those who were priced out of homes a couple of years ago or were prudent in saving up money for a home are now going to be able to reap the benefits!
Related to this is an article I found on the DrudgeReport: One Third of New Owners Owe More Than House Is Worth. Woe to those who purchased their homes with silly loans that are resetting right about now.
Topics: Housing Market |
August 13th, 2008 at 3:09 pm
Not that I plan to move or anything, but I didn’t get a dumb loan and wish I could have a do-over on my loan at the new value. Oh well, good thing I’m not trying to trade up.