SLUMP IS GOOD | Wannabe homebuyers see happy ending in dropping prices
July 8, 2007
BY ALEX VEIGA
Kurt Montufar isn't stressing over the housing slump. He's actually hoping things get worse.
Like many wannabe homebuyers who were priced out of the market during the last boom, Montufar spends time these days scanning real estate ads and news reports to determine if it's time to take the plunge and buy.
...
Meanwhile, price gains of just 1.4 percent or less were reported in New York, Chicago and Washington.
Those numbers have left many people trying to ''time'' the market to take advantage of the slump. But experts said that can be risky because there is little consensus on how long the current doldrums might last.
In addition, the market forces that helped drive the housing boom -- affordable financing and the alluring prospect of escalating home values -- are no longer a given. Potential price breaks could be wiped out if interest rates rise any higher.
...
Even if prices fall further, it could be tough for buyers to find affordable financing if interest rates increase much more.
In addition, lenders have tightened standards in response to a surge in defaults by subprime borrowers, and a number of subprime lenders have gone out of business altogether.
A number of wannabe buyers are pinning their hopes on foreclosures, which some studies predict will explode during the next two years as adjustable mortgages reset to higher interest rates.
Foreclosure activity jumped 62 percent nationwide in April from the year-ago period, according to Irvine-based RealtyTrac Inc. Among the states with the highest foreclosure rates were Nevada, Colorado, Connecticut, Florida and California.
Gino Barragan of La Puente, Calif., a lifelong renter, was among the hundreds of people who attended a recent auction looking for a good deal on a foreclosed home.
Barragan, 34, was hoping to find a condo costing less than $300,000. He found only one that he liked within his price range.
''I am willing to wait, but I'm keeping my eyes open,'' said Barragan, a teacher.
I like how they try to tag him a "wannabe" homeowner! Like, he's a dork because he didn't screw up the biggest financial decision of his life! What a LOSER!!!
No comments:
Post a Comment