The Big Banks effectively wiped out 40% of the collective wealth of middle class America. Middle class America is enduring a 'values' and priority recalibration. Loss of wealth equates to significant loss of choice. Folks simply can not afford to move. Those middle class Americans who think they can will realize 'the fix is in' when they are required to offer larger down payments as a result of bank ordered (and manipulated) appraisals that are 20% too low. (plus 20% down, plus cash to bridge the appraisal gap. MORAL: the big banks don't want to provide mortgages)
Until real estate professionals make public the radical alternatives to traditional financing, the economy will be at the mercy of service sector jobs providing second and third incomes for hard pressed tax payers. Until middle class America is spared the consequences of a looming mandated healthcare bill, uncontrolled deficit spending, special class status of entitlement programs, and increasing taxes and home insurance bills along with continued predatory big bank practices...what we have today may be the reality until some of the stolen wealth is regained and alternative home financing has gained a foothold. At the current rate of economic growth, what has been stolen in three years could take decades to recover.
Move up sellers are staying put.
Downsize sellers realize 40% of their equity has been stolen and must wait for the market to restore some of their retirement equity.
First time buyers responding to the big banks advertised low interest offers realize the 'fix' results in the home they want being removed from the market. The owner 'stays put."
Too big to fails continues to undermine the "American Dream" agenda.
Inventory is so low here I can keep track of it with a note pad. Unfortunately, it is not because folks don't want to move, it is because they believe they can not move. Todays home owners are not well informed regarding their options. These options will not include the big banks. If DC keeps their hands off, and the Big Banks are prevented from interfering, this log jam will be resolved, but I think that is way too for which to hope.
Could the 'fix' be related to: Banks manipulate by imposing their criteria on appraisers for traditional sales resulting in low appraisals so their bank owned inventory can be cleared faster? This in turn lowers property values and further steals wealth from middle class America. And still no one has gone to jail.
This is a very serous..very serious problem.-.this cause of the low inventory.
Annette Lawrence - http://www.FloridaRealEstateMadeEasy.com