No one can read their crystal ball and tell the future of the local real estate market. The average person tries to stay up to speed on the market by reading the various reports from the various news sources. This method of information has a basic flaw. To know how a specific market is responding, you must inturpret the national and state reports in light of the local market condition.
Look at unemployment. Nationally it may be at 9%. Locally it may be 13%. If you are a 2 income family and one of you lose your job, you are at 50% unemployment.
Nationally and statewide the real estate market is not strong. However in the Corona, Eastvale area, the banks have not been flooding the market with foreclosures. The inventory is now very low. Therefore, buyers are now offering over asking price for homes. This window of opportunity could soon close. If the banks once again flood the market with foreclosed homes. . . they know to do so will cause another downturn.
The banks learned the lesson of flooding the market with beat up houses. Their past practice cost everyone vast fortunes. They are making a strateic change in their method of operation.
It appears that the new strategy will be a defined process. The Banks will be staffed with people who are knowledgable in the various facets of the process. They will be able to process the transactions in a systemmatic manner.
1. Negotiate a loan modification if it is possible.
2. Accept a short sale if the loss will not be too great.
3. Rent to the underwater homeowner until the market stabilizes.
4. As a last resort - Foreclose.
Are you still waiting for the other shoe to drop on the housing market? It could be a mistake.