Inquiring minds are reading the LATimes’ article, “Now is the time to sell…“, because the second dip is upon us:
That was Steve Harney’s advice recently to a roomful of real estate agents. Harney is a housing industry consultant who told the assembled agents of John Greene Realtor in Naperville, Ill., that they should tell clients who have been sitting on the fence about selling that the time is now — if they want to sidestep more marketplace competition in a few months.
Or, as he put it, the cork in the dam is about to pop.
Only if this is the first post on this blog will you learn from what follows (although the author creates a great metaphor):
That “cork” is banks’ indecisiveness. The “water” behind the dam is their stockpile of foreclosed homes, which has been growing with a vengeance for a couple of reasons, Harney said.
Banks have been in a state of limbo this year about what to do with repossessed houses, and so they have mostly held on to them in order not to add to the nation’s oversupply of homes for sale, Harney told the agents.
“The banks have been saying, ‘There has to be a number [the market] can hit where we can keep the river going without flooding the valley,'” he said.
Apparently, he said, the nation hit that number recently, as prices reached a relative level of stabilization.
Remember last August when President Obama assured everyone that ‘things were getting better? Well, how does his remark jive with the following:
“In August, the number of houses banks took back was up 49% over the year before, and September was the greatest month in history for repossessions,” Harney said.
Folks, 2011 is here…Happy New Year!!!
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