The Great Tsunami of Foreclosures – Shake up or Shaky Ground?
December 21, 2009 by Kristin LaVanway · 3 Comments
We have been hearing about it for over a year – the great tsunami of foreclosures that the banks are hoarding that will eventually flood the market and tank our fledging recovery. But is this fact or fiction? Here’s a look at the numbers here in Phoenix…
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I am a Realtor in Gilbert, AZ, working with clients throughout the Phoenix Metro area. I am lucky to love what I do and appreciate the difference I can make in people's lives.
In a previous life, I was a rocket scientist - really! - but decided to step away from corporate America to be a Mom to my four boys. Found it hard to do bake sales, so I ran a small independent programming business instead.
Flash forward...I am now a single mom and I face many, many challenges everyday. I am living through the hardships that many are facing in this economy. These experiences have motivated me to help other people in my shoes.
I have teamed up with Dean Ouellette to form the East Valley Team - the best darn team in the Valley. Check out our site at http://www.EastValleyTeam.com. I spend way too much time on YouTube - check ou tmy channel at http://www.youtube.com/klavanway
First another great one and I agree with you the flood is not coming, BUT one thing to worry about that one loss litigator told me about is in 2010 a good portion of 5 year arms will be coming up and for the next three years they will be hitting the market heavy, heavier than the 3 year arms we are just finishing with.
But like you said, we can use some inventory. So while I agree that the flood is not coming, the large supply of 5 year arms that is starting to come due now are not going to help the market recover to quick…
would love to hear your thoughts
So no tsunami, but the steady rain will continue…I hear consistent evidence that we are in recovery mode until at least 2012. Distressed properties will make up a big part of the inventory until then. I am hoping that prices can remain flat during this period and then start to make normal equity gains like we saw prior to 2003. You know, life goes back to normal. It’s just that a lot of people don’t remember what that means…
There are way more ifs in my mind than just loan resets. Negative equity is freaking people out. The job market is a big factor – can’t make the mortgage if you have no job – but at least we have a slight edge in unemployment – below the national average.
I am just tired of the sensationalism and fiction I keep reading. Things are tough enough without people who don’t know what they are talking about trying to sell a bad story.