Thursday, December 10, 2009

Home Values - Where Are They Going

With housing values falling from their peak a couple of years ago and millions of homeowners forced to sell under distress, pricing a home for the market has become a very delicate task.

Market-rate properties are having to compete with foreclosed homes or short sales that have been discounted by 20 percent or more, increasing the pressure on real estate practitioners to get the best deal for the clients even as buyers demand more and more concessions.

Aligning a seller's needs with the realities of today's market can be unpleasant and, in many cases, simply impossible.

In the first 11 months of 2009 homes lost $489 billion in value. In 2008 homes loss significantly more $3.6 trillion.  Could this be evidence that home values are stabilizing?

Properties in 48 of the 154 markets tracked by Zillow rose in value this year, but Zillow’s Chief Economist Stan Humphries believes prices could decline again in 2010.

I believe that demand will come under downward pressure as mortgage rates creep back up after the first quarter and that housing supply will experience upward pressure as the volume of foreclosures continues to remain high. Both these factors will challenge the recent stabilization of home prices.

In an estimated 22 states, mortgage delinquencies are likely to decline in 2010 as tougher standards take effect and lenders remove bad debt from their books, according to credit-information company TransUnion.

TransUnion also expects to see mortgage loans that are 60 or more days overdue decline to 6.39 percent at the end of 2010 from 6.56 in December 2009.

If you are starting your search to buy now or in the future, why not search like a realtor. Sign up for listing book, a free service I provide with no strings attached. Here is the link:

If you would like information on Buying, Selling, For Sale By Owners, 1st Time Buying, click on the appropriate link on my website

Want to check out some Foreclosures or FSBO’s? Visit my website:

What did the house down the street sell for? Want to know call me or visit my website at

If you would like to know what your homes current value is check out Market Snapshot on my website or just call me at 636-294-6061.

For any of your Real Estate Questions or Needs call Me at 636-294-6061 or
Remember “Cribbin Realty” Where Performance Outsells Promises.

Mike Cribbin

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