Cincinnati Area Board of Realtors President Pete Kopf says 44-percent of sales last month were lender involved.
“Some people might say, wow that’s scary. It’s not scary. What it is is the cleansing of the lender involved sales of our inventory. Once we can remove those sales, we can continue to help our real estate market, local real estate market heal.”
He says it’s a domino theory. Foreclosures and short sales bring the market down.
Comparing March of last year to last month, Cincinnati saw a 7-percent drop in home sales. Kopf attributes that to the 2010 first time homebuyers’ credit.
Northern Kentucky home sales were off 11-percent.
Sorry Pete, when foreclosures are continuing to flood the market, housing prices will continue to drop, people won't buy these "affordable" homes, lenders will continue to tighten standards and more people will end up underwater on their mortgage and forced out of their homes. Four years after the housing bubble exploded the bottom of the market is nowhere in sight. It will take years before the inventory of homes is cleared up, and even then they won't be able to afford putting 20% down as a down payment on even a cheap home as it becomes the new standard.
Game's over, folks.
Posts
No comments:
Post a Comment