At the moment in the US enclosure market things are a bit tough, there are you, 000s of homes for sale part of every city and in all the suburbs. This means with such huge resource it is a potential buyer’s market and distressed sales and foreclosures drive average home prices down even more. If that is not enough lenders have tightened up credit requirements for homebuyers; something they should have done at the top of industry, not here at the bottom. Coldwell Banker Costa Rica
Obviously, there are lots of homes for sale and few potential buyers. Many home sellers who are upside down in equity wrap up doing Such transactions, selling their home for less than is payable and promising to pay the bank on a note later. The banking companies would rather do that so they do not have to foreclose and lose even more, as they maybe unable to accumulate on the total amount from the former home-owner.
Then of course, the real estate agent and the broker also have to be paid, this is yet another payment out from the deal, and each incremental cost, makes homes harder to trade, as they cannot meet the financial needs of buyers, retailers and lenders. When this happens the house remains on the market contributing to the excess inventory. A bad circle of housing catastrophe making some analysts question; will it ever end?
Recently, one housing Suspect Tank participant proposed that all real estate professionals depart the scene for quite a while, allow newspaper work and regulations to relax, so folks could sell their homes without the agents, eliminating another 5-6% of the costs. This will allow more homes to trade and help close the gap, as that 5-6% signifies an entire chunk of homes would be sold, and would be taken off the market and taking up the slack. Something to think on and an interesting conversation either way.