A group of analysts from Deutsche Bank recently forecast metro New York home prices to plunge 40.6% from March prices. The banks projections include Westchester, northern New Jersey and other nearby areas. Deutsche analysts, led by Karen Weaver, took into account numerous variables to reach their prediction, with affordability being a decisive factor. This sobering projection came amid—and in contrast to— Deutsche’s national projections of 14% for home price declines.
According to Weaver, New York City's main problem is exorbitantly high real estate prices, rather than the financial industry collapse. As the Deutsche report notes, New York’s 2007, second quarter, metropolitan home prices peaked at $552,000. The median price had dropped 19%, to $446,000, by the first quarter of 2009, but today, New York tops the list as the nations least affordable market among the 10 biggest metropolitan areas.
Combine Deutsche Bank’s astounding prediction with findings from Mortgage Bankers Association, for the week ending June 12, [which showed a 15.8% decline in loan applications], along with RealtyTrac’s May foreclosure report, showing an 18% rise in foreclosure filings since May 2008, and it becomes obvious the prevailing wisdom among New York homebuyers is to seek foreclosure help from a short sale service group or short sale specialist.
As homeowners have little hope of selling their homes while property values dive, mortgage rates keep going up, and the rate of foreclosure filings climbs skyward, the demand for mortgages, according to a weekly MBA report Wednesday, plummeted in the second week of June, resulting in a 7-month low for the index that tracks mortgage applications, despite 30-year FRM average rates being tempered.
As interest rates are much higher than in recent weeks, MBA’s 23.3% reported decline in refinance activity is yet
For the concerned seller, sitting back and allowing foreclosure to come down on his/her head would be disastrous. If you can’t make your mortgage payments, the very last thing you should do is remain idle.
If you ever hope to buy a house again within the next several years, the short sale stands the best chance to avoid or stop foreclosure. A short sale will let you sell your home for less than you owe, even if your balance exceeds the market value of your home. Only a short sale specialist is truly qualified to push through the rigorous trappings of a short sale. And for real foreclosure help, the seller should consult only with a short sale service group with years of successfully completing a great many short sales.
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