many market-watchers say the next leg down in home prices may come from pressure brought by foreclosed home inventory hitting the market, writes Nick Timiraos in today’s WSJ.
So how do foreclosures drive down prices? Well, banks want to get bad loans off of their books, so they put their supply of foreclosed homes up for sale at super-low prices. If a foreclosed house on your block sells for $100,000, when your own house is appraised at $250,000, good luck getting your asking price, once the Realtors and appraisers take a look at the neighborhood’s recent comparable sales.
Another complication: Fraud. Take Monday morning’s announcement from the Department of Justice about the case of Christopher J. Deans.
Mr. Deans, a Raleigh, N.C.-based real estate investor, pleaded guilty >>> Keep reading entire article by clicking on title link above.
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