Tony and Suzanne Marriott's Phoenix Arizona Real Estate Blog

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THREE REASONS WHY AMERICANS CAN EXPECT A DOUBLE DIP IN THE HOUSNG MARKET IN 2011

No sign of things doing much different in the Phoenix area either.  It will be years before things get back to "normal".  Short Sales are a growth industry unfortunately.

THREE REASONS WHY AMERICANS CAN EXPECT A DOUBLE DIP IN THE HOUSING MARKET IN 2011 -Looking at the Market in Central Florida will give insight as to what other areas can expect.  

Osceola County was one of the fastest growing counties in Central Florida in 2005. By 2007 the boom turned to bust, and builders by the boatload were stuck with excessive inventory in a rapidly declining market. 

"Until the balance of supply and demand can be equalized prices can't stabilize" said Sean Snaith, economist with UCF at a recent economic forum held in St. Cloud Florida addressing the local Chamber of Commerce. 

 

Three Reasons Why Americans Can Expect a Double Dip in the Housing Market in 2011 are:

1) Hidden foreclosure Inventory- Lenders are currently holding a five year inventory of foreclosed properties. They have learned that releasing large quantities will further drive prices in housing down- the freeze allowed a blimp to appear on the radar-this was a temporary. The inventory is still there and will eventually come to market.

2) Unemployment- Unemployment and Under-employment postpones home ownership and contributes to the distressed property inventories.

3) The Lack of Pent Up Buyer demand- Buyers are being cautious. The New York Times recently published this article

 Lending requirements.- Tighter restrictions* have sidelined many potential home buyers. Lenders were not only controlling the origination of new mortgages they were restricting sales with contingencies on Short Sales and disallowing investors with cash. Resulting in lower sales at lower prices.

*Lenders are grappling with new models to lower FHA score requirements as perspective home owners who wanted to buy were turned down for loans. Recently Wells Fargo announced that they will consider loan applications for applicants with credit scores below 600.  They would require 5-10% down payment money, no late payments for 12 months, and a 2 year job history of steady employment.

Federal Programs have filled the gap for some buyers with the utilization of the Neighborhood Stabilization Program and Rural Housing Loans. These have effectively opened the door to home ownership for many buyers who qualified for these Federally funded programs. They typically are buying lower end homes as well, watching carefully their expenses in an economic climate of uncertainty. There is also the Section 502 Guaranteed Single family Loan Program available for homes in Osceola County, Florida.

 

Allison Stewart Broker, SFR, CDPE 

407-616-9904 www.floridahouseinfo.com                                                                                                        

 

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About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Learning Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
BVO Luxury Group
Keller Williams Arizona Realty

Comments

You are so right!  and Allison in Florida was not afraid to come out and tell it like it is.  Being positive is great, however negativity is all around us!

Dick Beals

Posted by Dick & Sandy Beals (Wilmington Real Estate 4U Wilmington, NC) almost 8 years ago

I am not a Realtor but can see the logic. Its scary! So what do I tell my clients if they want to buy? What do you say if I send them to you?

Posted by Jayson Hoffer, Mesa AZ 480-948-6115 Home, Auto, Life Insurance (Jayson Hoffer Insurance Agency Inc.) over 7 years ago

Dick I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!  

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Jayson Hoffer I was remiss in the early days - just now catching up with comments from blog posts since day 1 - thanks for the comment - hope you are still in the 'Rain!  

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Enjoyed this post and want to read more - try this one - Peacocks and Pickles for Christmas 2015!  Merry Christmas!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) almost 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

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