In the optimistically titled article, “Wall
Street throws a house party,” CNN reports that Lowe’s CEO, Robert Niblock,
sees an end in sight to the housing decline, “In recent weeks we have seen consumer confidence improve, housing turnover show signs of a bottom in certain markets, and home prices slow their decline.” But while Lowe’s earnings are up, high-end homebuilders, like Toll Brothers, are down. The market may be picking up, but it hasn’t picked up enough steam for a return of the McMansion. It seems that individuals are more concerned about investing in properties that they can fix up themselves with a little bit of paint and a few new counter-tops and are shopping a bit more sensibly when seeking to purchase a home.
“’Mortgage rates are low. Home prices are low. Affordability is high. It’s at the point in most markets where it might be a good time to buy,’ said Kurt Karl, chief U.S. economist with Swiss Re.
But people still need to be cautious. In order to really make the case that the real estate market, and hence the economy, is getting better, housing prices need to stabilize and the spate of foreclosures that has plagued many markets needs to stop.”
Hmm… Interesting.
So, what could slow or stop the “spate of foreclosures” mentioned above? What alternative could be less damaging to a homeowner’s credit and better for surrounding property values? What option could prevent a house from lingering on the market too long AND make it more alluring to prospective buyers? If you answered “A short sale!!,” you would be correct. A short sale can help you avoid a foreclosure, so you don’t find yourself in the same position as these fine folks in Laguna Beach or these down-on-their-luck people in Huntington Beach or any of the families across Orange County who’s home recently hit
the auction block.
Minda Reves is a freelance writer for SHORTsense.com