One so called expert said we could see headlines about the real estate market crashing again. Another said that the housing market is going to continue it’s decline for another years or two.
He referenced an article that showed that mortgage applications dropped by 9.5 percent the first week after the tax credit expired.
I don’t want to apply for the job of “Amateur Economist.” Here are a few examples I found of actual economists getting their predictions wrong.
1. An economist published a book in 1987 that predicted a depression in the 1990s. That proved just a little inaccurate, no?
2. Supposedly in 1996, Alan Greenspan, stated he thought there was too much irrational exuberance in the US stock market. The stock market continued to climb for another 4 years.
However, Greenspan was bullish on the last economic expansion that went best. How wrong was he on the last housing / economic bust?
Who really knows what is going to happen in the housing market. I do know that despite all the crazy predictions, the housing market will eventually recover. It might take another 1-3 years to flush out all the foreclosures and “shadow inventory.”
But, after that happens the housing market will stabilize and start a slow appreciation. It might take 8-12 years for prices to return to the previous high. Maybe even longer. But, they will turn around eventually.
What does that mean to the person in an upside down house? They have a great opportunity to short sale their home and buy at the bottom.
They can erase 8-12 years of negative equity and start building equity when they qualify to buy another home 3 years after their short sale. If you are upside down by 20% or more, a short sale makes great financial sense.
What do you think? E-mail me back if you are bearish or bullish on housing. Just put “Bull” or “Bear” in the subject line of your e-mail. I’ll release the results of this informal poll tomorrow. Thinking about a short sale?
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (281) 602-8050
Thinking about a loan modification? Our Houston loan modification kit has the instructions you will need to get a loan modification approved with your bank.
Thanks for reading this, Alice Monroe.
Alice is a Real Estate Agent at Corali Realty.
Alice Monroe specializes in loan modification assistance and short sales in Houston Texas. Houston Loan Modification Help, Houston Short Sales. Houston Short Sale Realtor. Houston TX Short Sales. Houston Realtor.
Copyright 2012 SFI Marketing Institute, LLC. All Rights Reserved.
Alice Monroe, Corali Realty, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Alice’s personal views and do not reflect the views of Corali Realty.
This information on Houston Short Sales: Why Is Everyone So Negative About The Housing Market? is provided as a courtesy to our viewers to help them make informed decisions.