Hello, this is Isaac Toussie, a professional residential real estate developer of many years’ experience, and I’d like to share some of my personal observations on market trends with you. As a real estate professional, I have often noticed certain trends not being covered by the mainstream media. I would like to take this opportunity to share some of my views, as distilled by over a decade as a developer of residential housing. But before we dive in, let me just state for legal purposes that the following information is merely opinion, and should not be taken to be advice of any kind by anyone. I, Isaac Toussie, am simply providing some insight into the business, but nothing upon which any decisions should be based. Readers are urged to consult the relevant professionals when making any important decisions.
So, with that out of the way, let me tell you about two issues that’s been of interest to me lately.
First off, our nation’s capital has some very interesting news, real estate-wise. Though it continues to be brutal for the D.C. housing market as gains posted during boom-times keep disappearing, new developments are afoot that give hope to some. Now everyone knows that home sales have fallen as credit’s dried up on top of an increasingly uncertain job situation for many, with suburban D.C. has even experiencing price drops of up to one hundred thousand dollars! Yet there may be a silver lining in even this. After all, one man’s trash is another’s treasure. And so the glut of foreclosed properties triggered a buying spree in some places, especially among the many first-time buyers of Prince William County who finally found prices within their reach. That investors also swooped in to snap up properties is generally taken to be a positive sign, as it reflects a certain confidence in market fundamentals. Indeed, these two groups are like the proverbial canaries in a mine, traditionally signaling trends and shifts.
The second matter that has held my attention recently concerns mortgage delinquency. According to a recent industry survey, the rate at which mortgage payments have fallen behind has slowed down a little during the fourth quarter of last year. This has surprised many analysts because delinquency typically rises during the last three months of the year, what with all the expenses brought about by the onset of winter and the gift-giving season. Could this be that much-awaited early sign of a recovery on the horizon?
Of course, there are also those economists and other such experts who believe that the situation is still extremely grave, as there are still record numbers of homeowners in financial distress. The big problem is that way too many have missed at least three payments, and these are precisely those who are least amendable to the variety of mortgage relief programs available. And these are the very people who will be going into foreclosure….