Just curious to hear what is happening with everyone in their market area. We have a large amount of short sales, forclosures and over-supply in my market area. Many blame the lenders for the declining housing market. I think it goes much deeper. Certain organizations claim there isn't a "real problem" - ?????????? - I don't understand why. Guess they haven't had to try and help a family through a short sale or foreclosure.

I'm in Scottsdale AZ, it's been slow. I think it's a great time to buy here. I just closed on a home on Monday.

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lageorge - I also meant to respond to your comments about getting a "hold" on your ARM. Are lenders getting the word out or waiting for the borrowers to ask? I haven't heard of this option, but think it would certainly help many (even for the short-term).

lageorge - aside from the borrowers who obtained a mortgage loan who were clearly borderline - what about the appraisers? Do you think there is a high percentage of appraisals submitted to lenders that didn't state true market value? What about the "drive by" appraisal? What are your thoughts about this angle?

I am in Southern Indiana. I know that some areas have hurt worse than others. Things did slow down for us some in the fall of 2007 but overall once I compared my numbers, 2007 was steady until October for me. Mortgage guidelines have changed some,and in my opinion-most of what has been removed-should have been removed a long time ago. I am a commercial/residential mortgage banker. There are still alot of government loans (FHA,VA,RD) that can help with anyone who has had credit issues in the past and lately has been offering rates comparable to conforming loans so even those without credit problems have been opting for them here.
Also, the government did step in to help some ( still not enough in my opinion) that are on Adjustable Rate Mortgages. If you are already in an ARM and have not been late on your payment (which is where the problem lies for most) then you can request from your lender to put a hold on your adjustment. Several people have called me begging to refinance, and I have suggested this option instead. I know of at least 2 that were able to get there rates fixed for another 7 years. It's not the best answer but at least takes care of the immediate situation.

Hi Asterisk - late night, huh? I actually work in Butler County, Ohio. We do have quite a few short sales, forclosures, etc. Most of the investors that I know are buying the properties and renting them. The plan is to buy low, hold & rent then sell at a profit (years to come). Actually pretty smart, if you have the cash. Many buyers seem to be deciding to rent. Everyone says it's a buyer's market, but the buyers don't seem to think so. Seems many want to wait until the property prices are the "lowest." Tough to predict. Is hard for a portion of the buyers, but I have a question: is it hard to buy, or have the guidelines become what they should have always been? Would we have all of these foreclosures if those who were borderline had not been able to get that adjustable rate mortgage? I am not blaming the buyers for the present state of things - please don't misunderstand. Just want to know what people are thinking.

Noticing a real glut in the market for about a year now. The housing market here (Cincinnati) was never too expensive to start but has been flood with so many downsizings, foreclosures, short sales so that the supply greatly exceeds demand. A lot of rehabbers have joined the market but at a time when prices are falling, many will not do well once Capital Gains and the real cost of holding properties are factored in - It's not like the Show "Flip that...". On the one hand it's a great buyers market but financing has become so conservative that all these houses are piling up and Investors taking them on are asking premium prices once complete. There needs to be a simplier way to get Home ownership with all the properties begining to pile up.