Great time to buy. I am seeing super low lot prices, so new homes are becoming more affordable then existing. This will keep foreclosures high. Expect two years for the lot inventory to start to disappear. Hopefully, foreclosures should start to drop as the economy stablizes. Once these two things happen, prices will start to climb again. I expect that interest rates will slowly increase starting later this year. If they don't when prices do start to climb an increase in interest rates could stop it immediately. This latest dip is just a result of increased demand as buyers rushed to get the rebate. I am seeing increased demand in the last month, so I expect that numbers for june will look better.
Expect foreclosure numbers to remain high through 2013 as OptARM loans and other 5yr IntOnly ARM's have their preliminary payment terms expire. Those loans were not as popular here in the PNW as they were in say, California. Although there were a number of them written in this area.
Also consider that the banking industry's "shadow inventory" of foreclosed homes that are not listed on the MLS is at astonishing numbers. Saw a report somewhere that the current number of foreclosed homes in the shadow inventory is more than all previous foreclosures listed to be sold from 2006 to now. Total number of shadow inventory homes would take around 103 months to clear,.....or about 8.5 years.
Salmo,
Depending on your equity position it would probably be wiser to rent it out for as much as you can for as long as possible. Short that you could list it to compete with the two other condos in your building. Otherwise I would probably watch the other two very carefully to see what they end up selling for.
My parents are stuck with a condo in Puyallup they will have to hold onto for years. Being a landlord sucks and it would be near impossible to sell for what they owe. They're only real option is to pay the extra payment, pay the note down as much as possible, and sell when they see that they can get enough to get out of it.
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