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Daren Blomquist, RealtyTrac VP, on why short sales can be a good thing for the housing market in the long run.
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15%.
And that will be a good sign for the housing market that's according to our next -- -- be joining is now Darren -- quit his vice president of realty track and Daryn.
You know that the foreclosures.
These short sells at this they don't seem to go away and didn't say that the more they go up the better it is for the housing market.
Well yeah I and in in the long term it's good for the housing market.
In the short term it's gonna be more pain or for home prices were gonna -- home prices continue to be depressed.
Because of this high incidence of for -- sales as you said one in every four properties -- selling right now.
Is -- some stage of foreclosure or bank down and those properties are selling 29%.
Below the average price of properties not in -- so these are weighing down home prices.
But analog turn this this is that needed Madison that the market needs to take.
In order to truly recover we need to -- distressed properties cleared.
You know I'm with you -- that that's why I think a lot of the things that have been tried over the last three years.
As far as intervention is concerned just more -- -- -- speed bumps until -- eventually had to go.
Having said that would his big foreclosure settlement.
Can we now expect to see a -- -- never heard the words surge in foreclosures again.
Yes we're seeing exams and surges in the foreclosure numbers and individual states and narrowed those foreclosures -- -- new -- -- that are entering the pipeline over the last few months.
Are gonna translate.
Into short sales -- short sales more sales of bank on properties in 2012.
And we -- -- that before this this so called robo signing settlement was the was agreed upon.
And we're gonna see more of that I think at the logjam isn't gonna continue to be -- because of that settlement and we're gonna see more of those sales I don't see this as a huge.
Flood of foreclosures all hitting a one time.
But we're gonna see more sales of foreclosures and we did in 2011 for sure there.
Let's talk about the role of the all cash buyer or speculator you will obviously blamed by many.
For the housing bubble and that's -- but really right now the critical key component that's.
Getting back on our -- right.
Yes I mean we need -- we need buyers to clear this inventory.
And that the investors are -- an important piece the market that's -- -- inventory along with.
First time homebuyers are big segment that's very active in the market right now so those cash investors I I see is an important.
Player in the market to clear this inventory.
They're not only make how -- we make the transition though from OK let's say a lot of these foreclosures finally start to get that taken off the market and that number goes less and less.
I don't see the transition to the first time home buyer you're talking about another would be homebuyers it banks still have these -- -- You know these real it's it's really still difficult to get along.
Well yes I mean I think we don't want to repeat the mistake.
Ten years ago where we made it to too easy for someone to buy -- -- I think we we got to stick to our guns there.
And not allow anybody to buy a home who who wants to.
They have to qualify and as I think those requirements are there but the prices are coming down so low in some of these markets.
That but it's this it's accessible for a lot more of these -- first time homebuyers and so.
The pricing coming down again as painful in the short term but it allows.
Some of these buyers who may have not been able to get in the market in the past first time home buyers under occupant had -- -- to get -- and again even in some cases pay -- themselves.
Before I let you go -- and this 5% enough to put down -- what's the at least about someone should be able to put down that you would think would be reasonable.
I I honestly think probably 10% would be I did I did that place to start.
Are you listen the I guess the existing homes now about a 160 -- 10% that is reasonable thanks a lot we really love to work by the -- you've got to the best we appreciate it -- Enqvist of realty track and we'll see you soon.
