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I am hearing rumors that there will be another housing dip nationwide. Fitch Rating, a company that rates mortgage servicers and other industries, is reporting that lenders are ramping up foreclosure proceedings for seriously delinquent loans. Loans that have not made a payment in over 6 months. Fitch is estimating that home prices could fall another 10 percent nationwide. Prices fell 1.1% month to month, according to CoreLogic, both in seasonally adjusted and unadjusted terms. This is the second consecutive month of monthly drops, as we head into the slower fall season.

Most loans are taking 8 to 15 months to foreclose. That means that in late 2012 and early 2013 home prices could again see some additional downward pressure. Others disagree with the 10 percent decline sighting the historically low rates and that relative to historic norms housing prices are undervalued when compared to current income rates.

This may sound again like more doom and gloom but it does have a silver lining for a couple of groups; landlords and home buyers. Landlords are seeing rents increase dramatically as those foreclosed upon must wait at least 2 years to secure a new mortgage and disenfranchised people choose to rent rather than "risk" home ownership.

Home buyers, especially in better performing cities like Dallas Texas, have an opportunity to purchase a home at a great value and finance it at historically low rates. Lending is a little more documentation intensive but fairly easy to qualify for. Investors can also gain doubly, rents are high and in demand and acquisition cost are low.

In talking to some of my Realtor partners, they tell me that good homes are hard to find and are selling fast at or near asking price. So remember, as the National Association of Realtors say, real estate is local. Don't worry about the national news and ask your local expert Realtors and lenders about the market. As with the generation before us, we could enjoy nice long term gains on your home purchases.
Richard Woodward
Banker / Senior Branch Manager, NMLS ID 217454
Envoy Mortgage - When Trusted Advice Counts
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