Misguided PA Realtors
PA Realtors set the actual “market condition”. This week at lunch with PA appraiser extraordinaire Joe Sommers, I produced this horrifying discovery…
Which means the roughly 30,000 PA Realtors, by means of person to person, blogs, message boards as well as videos and speaking engagements established the perception of the general public around the housing market for homeowners, investors & housing related industries.
Ever since the FREEZE on Bank Owned properties commenced, as well as, the injection of HARP, PA Realtors have perpetuated the belief that short sales were definitely over and therefore equity home sales were growing in number. What follows is a inescapable fact, there is certainly less housing supply. Here is another fact mortgage rates have gone upwards and frozen the upward climb of housing valuation increases.
Here is something else before the end of the year we will have housing prices slide backwards. PA Realtors, as individuals, are frightened with anything having to do with financial institutions and LOSS MITIGATION. It might consequently benefit them to go out of their own way and express an industry position which obviously is within contrast towards the statistics.
To further worsen matters a few of the PA Realtors “experts” pop their heads from the ground just like Punxsutawney Phil forecasting the way forward for property trends (myself included). However I add a very simple diversion within my views from the market place. I USE Statistics! I have spoken with Joe Sommers who is an expert on property valuation as well as appraisal industry developments, I study reports from RealtyTrac and then I put together a view according to those figures.
THE REAL ESTATE MARKET IS FROZEN! I predicted a stall along with crash (not far off)… The numbers have slowed on foreclosures because of the government bailout through the HARP program which has now reached its end. 85% of HARP associated bailouts with a homeowner, failed to get a loan modification approval. Of the 15% that get home loan modifications, their payment per month actually goes up (home loan modifications are not interest only payments) and most 60% of these end up with missed payments AGAIN. So where are these distressed homeowners and just what happens to them? They get foreclosed on. The greatest hocus pocus real estate market trick of all! “shadow inventory” is true! By the way shadow inventory is NEVER factored into housing inventory numbers (the blogs, word of mouth, speaking engagements, etc) since it might have a negative effect on values. MY ADVICE: Do your own diligence,
Read and verify yourself. The 2013 housing inventory stall is here now, read the economic data released on Friday. The 2014 housing crash is coming.
copyright 2013 James Harner