Real estate in bubble states showing signs of firming up
California, Arizona, Florida and Nevada are all beginning to see more buyer activity in the real estate market, according to a recent USA TODAY report.It's all part of the natural cycle of the housing market in bubble states that went bust, and it may hint at widespread recovery to come.
About 2 years ago, the banks were clueless in dealing with foreclosures because they had no recent experience. At first, they tried to get back out of the marketplace the value of the loans, but that was like being in denial. Eventually as more and more foreclosures piled up, the banks capitulated and dropped their prices.
Now we're starting to see some real prices out in the market.
USA TODAY reports that one area of Florida is seeing 1 in 10 homes attract multiple bids. That's the sign of a market starting to recover. Ditto in Arizona, where one house had 14 offers and sold for $40,000 more than its original asking price.
The marketplace is beginning to find a level, and it's starting in the bubble markets that fell the hardest.
It's great to buy real estate at a distress price. But what if you're the owner of a property that's worth less than what you owe on your loan?
Clark expects values to firm up and most people should no longer be underwater in the next 24-36 months. Of course, there will be some exceptions to this because all real estate is truly local.
No comments:
Post a Comment