Falling prices of Real Estate
Published On: February 1, 2011
I attribute the Recent decline in Real Estate prices to the carelessnes of the Banks. In the past 5 to 7 years the banks were giving out mortgages to anyone with a pulse and a social security number and even sometimes they did not even need that.
I remember buying my previous home, not having to show any type of documentation was very convinient to us, but many other people did the same and by todays guidlines they would never been approved. but back then Banks did not care because they were going to sell the loans to Big banks anyway.
We ended up with inflated prices and Homeowners who purchased the homes with no money down and adjustable mortgages which have started to go up a year or two ago. Now those same home owners who were paying a comfortable $1400 mortgage are forced to pay $1900-$2400 a month. that is no longer with in thier budget so the are forced to Sell their Home as a SHORT SALE or even get Foreclosed by the Bank.
The more Short Sales and Forclosures we have on the Market the lower the market keeps taking us because Regular sales have to compete with the Short sales and Forclosed homes dragging thier prices down.
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