Hear Greg on WIBC from 1/26/2009 HERE.
Read Greg's Interview in the Indianapolis Business Journal HERE.
It's Not Bad News. It's
Just the News.
If anyone tells you the 'for sale' home inventory is going to shrink this year, tell them to do some more homework. While the resale active market will see some up and down over the next 11 months, one thing is for certain: We ain't seen nothing yet (thank you Randy Bachman).
We're about to experience a torrent of lender owned or controlled properties hitting the market. The value of REO properties on the books of FDIC banks surged nearly 30% from the late 3rd quarter of 2008 through the 4th quarter. Those properties are going to be unleashed on markets around the country now that the TARP efforts have been so seemingly convoluted and are not being used to truly combat the foreclosure problems. Repossessions by Fannie Mae and Freddie Mac have blown sky high and in fact they had nearly 100,000 homes in their inventory at the end of September of 2008. With a moratorium on take backs over the holidays that expiring at the end of January by the nation's two big quasi lenders, there will most certainly be more foreclosures in the mix.
So this sounds like horrid news. Nope. It's just the factual reality of where the market is. As I continue to believe, as far as the market goes off track, there are opportunities that are every bit as positive. The media primarily uses information to take a position. I get that. But truth in advertising is a two way street. Look, it is a very challenging time for home sellers. The news coming out of Washington is getting more and more diluted each day for what the past/present bailouts mean. Forget the bailouts. Here's what it means for you and I: If we're selling doing so requires a major reality check on what the market will offer for your home. If you're buying there is plenty of mortgage money available and you are probably going to make a stunning buy in terms of overall value. Fear is driving the market now. You don't need to be afraid of making a purchase if you get good representation and understand this is NOT a short term investment. In this market the 'Flip My House' mindset is tanatamount to 'Take My Money'. Avoid that methodology and if you are in a position to do so, go ahead and make the home purchase you've been contemplating. In five years that's one thing you will be able to count on as being a 'no brainer.'
Questions? Comments? Donations? Greg@GregCooper.com or