In the fourth quarter of 2007, Prince George’s County reported 2,732 foreclosures, the highest in Maryland. However, during the 4th quarter in Prince George’s County only 1279 sold according to the MRIS. Basically, the number of foreclosures was double the number of houses that sold.
You don't hear the National Association of Realtors talking about figures that while they run ads on TV saying real estate ALWAYS goes up in value.
The housing bust in the Washington, DC area is far from over. This year a rising inventory of foreclosures will put significant downward pressure on prices.
People on the Eastern Shore think that they are ’special’ and while property values are dropping everywhere else things are still going up here. The reality of the situation is the bubble on the shore peaked November 2005 and property values have dropped 40% to 60% across the board.
C’mon who is going to pay $80,000.00 for a Pocomoke City lot in White Oaks next to a stinky clam processor and the train tracks? $485,000.00 for a rancher outside Salisbury or Berlin in what was a soybean field two years ago? People who are selling homes just need to get real and stop sucking on the crack pipe of phantom equity.
Two foreclosures for every one ‘regular sale’ is a sad statistic and could very easily take root right here on the Eastern Shore if people don’t get a grip on reality with prices or simply sell for auction values. The list, price, hold & defend that price method is broken, it can't be fixed and will soon be dead and gone the way of the Dodo bird.
The public wants open transparent real estate transactions, just like they want open government.
There are alternatives to foreclosure and Maryland is leading the nation with legislation to require lenders to report on their loss mitigation programs, but for many homeowners its simply too little, too late.
If you are one of the many who cannot make their payments you do have options, call your lender or visit the Maryland HOPE website
4 comments:
Economically, the Eastern Shore is usually 6 months behind the ups and downs "across the ditch". So hopefully we can hold our ground for another 6 months.
"Phantom Equity" -- what a great description!
yeah right buddy, maybe we can put in charge of the audit!
I read my news letter from First Shore Federal and it states that this local bank no no loans in foreclosure. I guess it makes a difference when you make loans only to people who have the ability to make payments!
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