NO ONE AREA WILL BE FREE OF THE ECONOMIC WRATH WE ARE HEREIN AFFECTED BY. BUT REMEBER (SPAM OR NOT) THERE IS A POTETNIAL TO RETURN WEALTH TO AMERICANS THROUGH THE COMPULSARY LENDER MANDATES MADE IN EFFECT BY WASHINGTON.
YOU CAN LEVERAGE THE PAIN AND SUFFEREING BY UNDERSTANDING YOUR LENDER IS UNDER THE SAME GUN...GET IT. THEY NEED TO MOVE TROUBLED ASSETS AND A DES MOINS IOWA CENTRAL SERVICING CENTER MAYNOT CARE ABOUT THE VIEW OF A PIER OR VIEW OF A MID WEST HIGHWAY. THEY WANT RELIF AND WANTS TO CUT A DEAL NOW.
THEY CANT FACE ANOTHER FORECLOSURE AND MAYBE SELL IT CHEAP OR WAIT OR CUT YOU A DEAL AND MOVE ON TO THE NEXT PROBLEM. ASK DAMN IT
CALL YOUR LENDER, CALL THE NAVY ,CALL YOUR HAIR SALON BUT DO SOMTHING ABOUT THAT MORTGAGE. DONT LET A VULTURES COME IN AND STEAL YOUR HOME !
In very affluent areas,you will find that sellers are waiting until the real estate market stabilizes to consider selling.
In addition, our crossover buyers or pond jumpers who want to move from redondo to manhattan are having trouble qualifying (they have little or no equity to transfer) plus they have to sell their home first! Our pool of buyers has shrunk and its more difficult to qualify. So when you have less qualified buyers its takes a while for homes to sell and price reductions are inevitable.
Also, even people who qualified for regular/standard loans may have had there loans sold to countrywide and other subprime institutions. Some of these mortgage holders are not modifying the ARMS (because the government is handing them money and not requiring them to help the homeowner in return). What could and will hurt the beach cities is the values slowly dropping enough to where some people are upside down. Also, many borrowers took out a first and a second mortgage. When the arms adjust their payments could be unmanagable.
Further, the resources that people used to qualify with and kept for reserve funds, like stocks, mutual funds & 401k's, etc have dwindled. So the cushion that may have helped get homeowners over the hump has thinned out.
Finally, while the equity was swelling people started to use their homes like atm machines. Further risking the possibilty of being upside down as the prices decline. Finally, the beach cities are not immune to job loss and corporate downsizing.
Additional issues that could affect value is builders putting on the breaks on building and discounting new construction. When new houses get cheaper they affect the values of the older homes in the surrounding area. The auction concept is also giving a perception that MB is on sale....it doesnt exactly build buyer confidence.
In my opinion, another thing that is hurting values is pricing listings too high and having them stay on the market ,adding to the growing supply. When the inventory rises to where it outweighs demand...that's what hurts prices. So the one area that we have a little control is pricing the listings to sell and not sit & further drive down prices and add to the problem. (Agents need to talk to their sellers about absorbtion rates and and pricing based on where the markets going not based on where its been! Look at solds, pendings and actives.)
All of the factors mentioned above, have and will continue to affect MB prices. I think we will continue to see an impact ,but it won't be as devastating as it has been for the Inland Empire, San Diego and surrounding communities. Partially because MB is not a new community. We have older/established neighborhoods with great schools. The schools, established infrastructure/ commercial developments and small business will help hold up the values to a degree....also there's only so much beach/ocean view property and that's a big motivation for people to live in the beach cities. Im caustiously optimistic.