Housing Recovery Not What You Thought

Housing Recovery Not What You Thought

We are going to be bouncing around at the bottom for a few years. That is the prediction by experts much smarter than me regarding the housing situation we face. So why have we had a recent large up-tick in home prices you ask?

 

As I have blogged about in the past – it’s because of artificial factors such as interest rates held low due to the Fed printing massive amounts of money and buying mortgage backed securities with the future inflation causing Monopoly money. It’s also because of investors buying with cash and turning the houses into rentals.

 

Well fast forward to today. An article just out today in DSNEWS.COM quoting a Trulia report that states “For the first time since November 2012, asking home prices decreased month-over-month, slipping 0.3 percent from June to July”.

 

Yes… the mini BUBBLE is bursting. If you were an optimist and hoped that your udsidedown mortgage was going to resolve itself when prices finally go back up. Then when prices did go up and your hope soared – well you now have really bad news. In some areas like Sacramento the DROP in prices was between 3.3 and 3.6 percent.

 

All this means is that until you start hearing really good news about the economy and jobs you should expect the same. It’s also has a built in conundrum in that once the job market and economy start getting better the Fed will stop printing it’s funny money and interest rates will go up. Sad but true.

 

The bottom line is that if you still have an upside-down mortgage you should seriously think about unloading it while you can and while there is still some protection in the law.

 

If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400 or send me an email at tgreene@tedgreenelaw.com or just visit my website www.upsidedownca.com.

 

Ted Greene

California Attorney and

licensed Real Estate Broker