Your ACTIVE REAL ESTATE FORECLOSURES FOR SALE Daily List has been posted. These are Single Family Homes ‘Active’ on the Birmingham MLS.
Home prices are already a third off their highs, but this summer could bring the real discounts.
Buyers are still cautious, and anxious sellers will have to price aggressively to get them off the fence.
That could result in a “summer clearance sale,” predicts Pete Flint, CEO
of Trulia, the real estate web site.
“We don’t imagine a stampede of buyers, like outside of Macy’s on Black
Friday,” he said. “We see this more akin to January sales where
retailers are trying to get rid of stock before it gets stale.”
Several factors, he said, will lead to blow-out prices:
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
Unemployment: 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.
These forces could all come to a head this summer, according to Flint, because of the
cyclical nature of homebuying. Buying takes off in spring as many young
families hope to make their moves before the new school year.
“By the end of the homebuying season, sellers will become increasingly
desperate,” said Flint.
All the experts, however, are telling buyers that prices will continue to erode all
through 2011. Even after that, no one is predicting outsized price gains.