Wednesday, June 1, 2011

Home clearance sale coming from 'desperate' sellers

I'm not surprise some owners have to sell due to divorces, deaths, or job transfers.  You could also put that some people need cash and want to sell before their equity drops further.
Accelerating price drops: Home prices have already reached their lowest level since the housing bubble burst, and are now at 2002 levels. Sellers will feel the pressure to make deals before their homes lose even more value.

Bloated inventory:
There are boatloads of homes on the market, more than eight months worth at the current rate of sales. Many are distressed properties -- short sales and bank repossessions. Such homes are selling at discounts up to 50%.

Tight credit:
Some homebuyers still can't obtain mortgages, limiting demand.

While the job picture has brightened, unemployment is still around 9%. People without jobs don't buy homes, obviously, but high unemployment also rattles working people. Lacking the confidence that their jobs are secure, they may not look to buy.
Read it all

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