Some Folks Just Don't Get It?
Word is in that there is a new wave shadow inventories (Video by trusted CNN Faber Report and Amherst Security Analysts) of Chicago foreclosures coming down the tracks for the 1st and 2nd quarter of 2010. What is a shadow inventory? It is 2 things:
- Rentals that Fannie Mae has had in rental inventory homes in Chicago that Fannie Mae intends to release back into the market this spring.
- Banks are again getting shot in the foot! Loans that were modified 12-24 months ago are now in foreclosure again. The best predictor of consumer behavior is the recent past. Our government is trying to save consumers that don't have a clue how to be responsible. It's responsible folks that are flitting the bill! This is for another blog.
What does this mean for home sellers and home buyers? Good news and Bad News! The Good News for Buyers is that home prices are going to drop another 12% through 2010. By this time analyst's and I agree the Chicago Homes inventory will the hit bottom by March of 2011.
I'm a buyer that needs or wants to buy a home and I have a credit score higher then 620, do I qualify for a Chicago home loan by FHA? Yes you do if you have a job and a qualified income for the price of Chicago homes for sale and low debt ratio qualification.
I hear the market is still dropping! What do I do to not pay to much? You must work with Chicago real estate agents who will act as your trusted advisor that knows the numbers. Have your advisor calculate and estimated Market Evaluation minus at least 15-18% below current market value. Then start with and offer 3% lower then that as a starting bid. You must be willing to walk away from a home. That emotional decision may come back to bite you down the road. Don't plan on selling your home for at least 7 years.
Check back next week for more helpful real estate information from "The Art of Real Estate".
Next weeks topic: How do I buy a home in a turbulent Chicago real estate market.
No comments:
Post a Comment