Question Details

Lucy Ibarra, Real Estate Pro in Rancho Cucamonga, CA

What in your opinion is the market going to do?

Asked by Lucy Ibarra, Rancho Cucamonga, CA Mon Oct 12, 2009

Do you think that home values will continue to drop? I know what I think but would love to know what's on your mind.

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Answers

6
Even though many locations have found their"bottom" there are those that have not and will continue to adjust. The federal government will present a plan that will mirror the "2009 federal tax incentive" program.

The sad thing is that very little has occured to relieve the vast number of individuals that will be forced to leave their homes becaose of "foreclosures." Banks are slow and reluctant to offer loan modifications and the "short sale" process is an abomination.....offering little to no support for those that are in trouble.

Only time will tell what the future will bring BUT for certain, America's banks need a wake-up call, fewer gifts, and a level of accountability.
1 vote Thank Flag Link Tue Oct 13, 2009
Speaking in General Terms about the USA, and not any specific State or Region:

The Dollar is failing on the World Market.

The Federal Deficit for this YEAR is $1.4 Trillion Dollars.

Real Unemployment in many States is approaching 20%.

Many State Governments, especially California, are essentially bankrupt.

The Current Administration and Current Congress are proposing even more increased Debt and increased Spending.

There are 19 million residential properties for sale in America at this time. The Banks have an estimated 4 Million Foreclosures that are not yet on the market. There is an incalculable number of "Shadow Listings" - possibly another 3 to 4 million homes - waiting in the wings.

The Construction Industry is on Life Support.

The Northern Automobile Manufacturers (Detroit) are history.

Other Manufacturers and Industries are shutting down and leaving the USA.

The Southern Mills and Plants in KY, TN, NC, SC, and GA are gone, and they are never coming back, excepting the European Auto Makers that have set up shop in Spartanburg, Montgomery, Nashville, Lexington, Birmingham, Chattanooga, etc..

There are No Jobs anywhere, except in Washington, DC.

Millions of "Prime Mortgage Homes" are scheduled to have ARM Resets this Spring, which will result in more Foreclosures and more Inventory.

Commercial Real Estate also has millions of Mortgage Resets coming this spring. Many regions in America already have 10% to 20% Vacancy Rates. This will only get worse.

Restaurants and Small Business are folding in droves.

The Tourism, Hospitality, and Hotel Industries are on the brink.

Over 300 Resorts and Hotels in California are being mothballed at this time.

Florida Tourism is dead, and Florida is in a "Negative Population Situation" for the first time in History.

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Yes, Real Estate Prices will drop. Probably to early 1990's levels, maybe lower.
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1 vote Thank Flag Link Mon Oct 12, 2009
CNN Money

Despite signs of broader economic recovery, the number of foreclosure filings hit a record high in the third quarter - a sign the plague is still spreading.

http://money.cnn.com/2009/10/15/real_estate/foreclosure_cris…
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0 votes Thank Flag Link Thu Oct 15, 2009
Thanks for sharing all of these great answers folks! I truly wish the best for everyone and regardless of what the market is doing out there, I wish everyone Luck and much Success.
0 votes Thank Flag Link Thu Oct 15, 2009
Simple answer: Many won't like however against professional code ethics attempt predict future. Many areas of country are strong direct link about Texas however other areas are not as blessed

http://activerain.com/blogsview/1258681/dallas-homes-for-sal…
0 votes Thank Flag Link Wed Oct 14, 2009
Housing prices will continue to drop--probably for another 5-10 years. Good Luck
0 votes Thank Flag Link Tue Oct 13, 2009
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