Homes Sarasota celebrate increased sales despite frightening housing market predictions.
Sarasota homes for sale continue selling paradise at rock-bottom pricing...and predicted lower!
Sarasota homes for sale might be overpriced, predicts latest Deutsche Bank report.
Local Sarasota real estate investor Jack Walters agrees with Deutsche Bank, sharing his concerns in recent Sarasota Herald-Tribune article: “What makes me nervous is the foreclosure market.” He adds, “The only homes that are selling are in the (sub) $150,000 range. If I were to buy at $180,000 to $200,000, what happens when the $300,000 to $400,000 market crashes? Who can afford a $200,000 mortgage?”
(source: http://www.heraldtribune.com/article/20091116/COLUMNIST/911161011/2264/REALESTATE?Title=A-good-sign-making-money-fixing-up-then-selling-houses)
Click Read More below now for disturbing news from Deutsche Bank about Sarasota’s embattled housing market .
DEUTSCHE BANK REPORT DISTURBS SARASOTA REALTOR
Walters is not alone in
concern for Sarasota homes.
Deutsche Bank report predicts that the number of people upside down on their mortgages — owing more than their homes are worth — will increase substantially between now and early 2011.
The report, “Drowning in Debt: A look at Underwater Homeowners,” predicts that 25 million mortgages, or 48 percent of the U.S. total, will be upside down by the first quarter of 2011. For the first quarter of 2009, the number was 26 percent.
The Deutsche Bank report lists the 50 metro areas with the biggest problem. Florida has 15 cities on the list — the most of any state analyzed.
The Sarasota-Bradenton metro area is projected to have 75 percent of mortgage borrowers underwater at that time.
Things look even worse elsewhere. The bank’s forecast predicts disturbing market conditions:
Tampa-St. Petersburg, 80 percent;
Cape Coral-Fort Myers, 85 percent;
and Fort Lauderdale, 93 percent — the highest in the country.
Deutsche MUST be mistaken…right?
Could bank report be mistaken or outdated?
How can report claim 41% of conforming loans are projected to be underwater by 2011, compared with only 16 percent in the first quarter of this year. Almost half of jumbo loans, those mortgages on higher-end properties, will be underwater by 2011, compared to only 29 percent in early 2009.
Now, jumbo or higher end mortgage loans are defaulting the fastest due to higher valuations, bubbles and continued pressure from falling asset values. As it is, the rich are going to be hit pretty hard going forward, the report emphasizes.
Which is worse, losing 50% of 4 MILLION or 50% of $350,000? My response: BOTH are disastrous!
For this reason, I help homeowners avoid foreclosure. If your property is worth much less than you owe and you must sell, you sell at today’s lower prices and show up at closing with the difference.
Or you prove hardship and we discuss your options avoiding foreclosure. Before Aaron Kessler published his Tribune piece, I was aware of Credit Suisse’s and Deutsche Bank’s disappointing forecast.
Sarasota homes for sale must overcome more challenges, predict “experts.” If you or someone you know is facing foreclosure please call me now. Many people have no experience with difficulty making the house payment. Let’s discuss your situation and options. Please scroll down below to leave a comment. By all means, if you can refute Credit Suisse’s and Deutsche Bank’s reports, please do. I don’t like sharing alarming (read: scary) market predictions.
