The Housing Landscape is Changing at Record Speed

Typically, I would have provided you an article that came from one of the national or local news sources, however, the last several days the market projections for real estate have changed as often as the wind.

Even last week, much talk was focused on how the stoppage of foreclosures will impact the real estate market and real estate values. The scenarios being put forth were:

  • Buyers will remain on the sidelines because they will wait for the glut of foreclosures that build up to be mass marketed, driving down property values.
  • Real estate values will rise in the short term because if foreclosures are stopped and previously foreclosed homes are taken off the market, then the supply will dwindle, causing an increase in demand.

Well, all of the news fit to be printed this past week about housing has now become all but irrelevant.

Bank of America announced that they are resuming foreclosure proceedings in 23 states and they expect the other states will be resumed in the near future. BofA has stated that they have found no significant problems with their paperwork and procedures and that they have not found a single homeowner that was improperly foreclosed on and removed from their dwelling. (Personally, I don’t believe that for a second, but nobody is asking my opinion anyway.)

It is now expected that the other major banks will be following suit and that they will take their chances against the army of government and private attorneys that are all watching what they do.

Many private attorneys are now marketing to people who lost their homes stating that they can help them get them back because of the bank errors. (Do you think the attorneys making these ridiculous claims will get in trouble for doing so?)

The bottom line is that if a person was not able to afford their mortgage payment and they were seriously delinquent and then foreclosed upon, it is a pipe dream to believe that anyone will award them back their houses because of a technical filing mistake.

Bottom line – if you didn’t pay your mortgage before, you are not getting your house back.

So where does this leave us? It appears that we are returning to business as usual. (At least what is now considered the “usual” or “normal” market conditions, which consist of values going nowhere, mortgage delinquencies continuing and foreclosures resuming.)

I wanted to get this message out because I have had many calls from potential clients thinking about holding off on purchasing based upon recent events.

Ron Largent is a Realtor, business owner and longtime Redding resident. He can be reached at ronlargent@yahoo.com or ronlargent.yourkwagent.com.

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is a Realtor, business owner and longtime Redding resident. He can be reached at ronlargent@yahoo.com or ronlargent.yourkwagent.com.
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5 Responses

  1. Avatar JimG says:

    Interesting observations – thanks for sharing them.

    I've tried holding one wet finger to the wind to see which way the wind is blowing, but that doesn't seem to work anymore. In fact, (changing my methodology and using two fingers) I'd predict market prices will both rise and fall in Redding. That is, sales prices for distressed properties may continue to decline (as their condition deteriorates further), while sales prices for well maintained houses in desirable areas go up, as the government prints more and more money to force inflation, and buyers who are able try to jump in ahead of inflation and beat rising interest rates.

    In the interest of full disclosure, I should admit to being seldom completely right, but that's my two cents…

  2. Avatar Carol & Rex says:

    Thank you Ron!

    Yes, that is our country in a snapshot.

    Capitalism is great, until the top get's to greedy.

    The working man just wants a job, family, and home.

    The one's who want something for nothing, get more.

    Guess who built this GREAT COUNTRY of ours, and is now the minority, getting shafted !

    ps: i am not often right either, but does anyone agree?

  3. Avatar Derral Campbell says:

    "So where does this leave us? It appears that we are returning to business as usual…
    I wanted to get this message out because I have had many calls from potential clients thinking about holding off on purchasing based upon recent events."

    This seems like an advertisement. Did he pay for this? I had to de-friend this guy on Facebook because he kept trying to sell, sell, sell.

    I would respond directly by saying that returning to business as usual would be double-dipping in disaster! sign me – Sick of Realtors! -Derral

  4. Avatar Leslie says:

    I am a RE Broker who is representing an attorney group who is successfully dealing with foreclosures through RESPA violations. I agree that there are many scamsters. We are not negotiating with banks. We are not asking them to do us a favor (aka loan modification). They broke federal laws and, now, they must make it right. The real estate market does not like us because we do not advocate short sales nor do they make a commission.

    Ron is being irresponsible when he alleges that this is not a valid avenue.

  5. Avatar LizAnn says:

    I appreciated Mr. Largent's information. Given that he has more insight into what is happening in the real estate market than most folks, it seems unfair to criticize him for sharing information on this site.