Mc Blog

Hey, what's going on?

We have experienced a some major increases in the real estate market of the last few years.  Recently, it appears to have slowed drastically and in some areas even stopped. What is going to happen next?

In the 90's southern California saw declines in the market of approximately 20%, overall. Will it be the same this time or can real estate continue to increase in value?

I think that a major downturn in the market is inevitable.  We are seeing increases in inventory, both new construction and resales on the market. We are also starting to see those TV adds for real estate auctions of foreclosures. Foreclosures are definitely on the rise.

What about those people who bought those large homes with interest only loans?  Will this add to the foreclosures? Many of these people had loans all due in 3 to 5 years. Many were told that the market would increase enough for them to refinance out of the interest only loans.  It does not appear that this has happened for many of them and interest rates have increased.

It appears that the interest only loans, population increases and the actions of the real estate industry,  as a whole, will make an upcoming downturn in the market more severe.

Let me know your ideas and thoughts.

 

 

I just happened across your blog as I was adding links to mine. I think we are all in the same boat and have been wondering the same thing. In fact, the most recent post I put on was about this very same thing. We are entering a "new time" where our businesses have to transform a little to stay afloat. We have been so used to depending on refinance purpose appraisals that now this has been a spiraling downtrend, our pocketbooks have gotten a little slimmer.

Yes, but transform how? We need to diversify and move more to purchases, REOs , attorney work, and assessment disputes. Do we make concessions in ethics? I don't think so. Do we jump on board the enhanced AVM movement and help cut our own throats? This is what some of our fellow appraisers have been doing. Essentially stabbing the rest of us in the back, even in the recent boom. Then, there are the appraisal management companies that want us to do their bidding at ridiculous fees. The investors who are purchasing these loans from the lenders need to know that there are appraisers out there who want to protect them by doing their jobs. There has been a change with many of the lenders, where they are cleaning out their approved appraiser lists. Hopefully, the good will prevail.