I bought a house in Ferndale on Nov 11, 2010 for $14,500. I know, wow, right? It is a small house with no basement or garage. When I bought the house I thought I was getting a deal. AS an appraiser I know market values. At that time I was aware that the home wasn't worth much more than the purchase price. I figured that when the high volume of bank-owned homes for sale decreased, the value of my new home would go up.
Well, it has now been 17 months and the value is still about the same. The market has not declined or increased much during that period, but the percentage of bank-owned homes on the market has not changed a bit. Sure they sell quick, but they just keep coming. I check daily. Every day, 2 sell and 2 are listed, almost like clockwork. All may recent area analysis reflects a period of stability, but it sure seems more like a period of nothingness.
How many more of these bank-owned homes are out there. I am assuming that the banks figured out that the homes will sell for slightly more if they don't list them all at once. Too many homes at once decreases demand, in turn value.
I do not like the game!!!!!!
Maintaining a perceived period of stability to help increase consumer confidence is not working. We will not recover from the decline in our area until the bank-owned homes are mostly or all sold.
I am aware that if the banks put all their homes on the market today, it would significantly decrease property values in the area, until they are mostly sold. We would be taking 2 steps back, but then 1 giant step forward. Then we can finally start recovering from the decline. This period of nothingness is not helping anyone. Lets get these homes on the market. If that happened, in a few months we would all see our home values starting to increase again.
Wouldn't that be nice.