Wednesday, June 18, 2014

It's spreading.

A house one block from mine that's up for sale just went under price reduction. My neighborhood hasn't fully recovered yet. I have equity because I've been paying for a long time, but I'd still lose money if I sold. They call me "effectively" underwater. Not trapped, but not whole.

I've been watching the price reductions in my town. Most of the ones from May have been cleared except for two. They must getting sopped up by people who think they are getting a deal. The cuts started in the very low range of 10 grand-ish. June cuts are about triple. Inventory is very low, but still 5 houses have been cut so far.

Inventory seems to be building everywhere. I first saw it in San Diego. Now it's spread to L.A. and Ventura. Sacramento inventory is alleged to be up 84%. And then there's this: Bottom falls out as mortgage applications plunge 9.2%. This is suppose to be the busiest time of the year. And that is a lot of percent!

Every single day I read articles about how the fed just has to raise interest rates. Has to! Yet one or two tenths of a percent rise in them "allegedly" caused people to stop buying houses.

Good luck with all that.

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