Could it be as simple as the old principle of Supply & Demand? - The road to recovery in our real estate market.

The last week or so I have been reading that many large banks
and mortgage lenders are now instituting policies to help curtail
the rise in foreclosures. (I'll refrain from stating that it took them
long enough to think and act clearly..)

JP Morgan - Chase Bank has announced they will modify the terms
of some mortgages (estimated up to 400,000 - that's not some but
many!) for those homeowners who are struggling to keep up with
the terms of their contracts.

Countrywide recently announced a mandatory loan modification program.
Mandatory. That's good news for those homeowners who have been unable to reach anyone at Countrywide (now currently owned by Bank of America) in their pleas for help to avoid losing their homes to foreclosure.

I'm not a rocket scientist. Nor do I have a degree in economics.

I do know one thing : If existing home loans for people are modified and they are able to stay in their homes we should be seeing fewer bank owned homes entering our real estate markets.

Here's the good news: Home sellers will have fewer homes on the market competing with their homes.
When that happens the downward spiral of sales prices will start to reverse itself.

The bad news? The buyers who are waiting for the bottom of the market to purchase may have waited too long.

I don't believe I live in a fairy tale world. Supply and demand has always been something I understand, and it looks like we're going to start seeing the signs of that basic principle working again very soon.


© Kris Wales a Macomb County MI real estate agent