Des Moines Real Estate Blog

Your Economist of Choice, Your Realtor of Choice

  • Adam Van Lin, Realtor
    Burnett Realty
    10200 Hickman Rd. #100
    Clive, Iowa 50325
    Cell 515.344.1068
    Fax 515.331.3401
    Licensed in Iowa

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Posts Tagged ‘west des moines’

Foreclosure & Delinquency Rates Remain Elevated in Des Moines

Posted by adamvanlin on October 19, 2011

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Housing Prices in Des Moines, Johnston, Urbandale, Waukee, West Des Moines…

Posted by adamvanlin on October 13, 2011

Here are the updated housing prices for Des Moines & surrounding areas.  As expected, prices topped out in August and have started their seasonal decline.  Not great news if you are selling your property, but with prices expected to decline over the next 6 months, you still have a window of opportunity to get a good price.  Especially with this warm weather we’re having in central Iowa!  Let’s hope for that to last as long as possible.

To the details… median prices dropped about $5,000 to $142,917 in September.  The yearly growth rate is still positive, so we are in better shape now than we were last year.  However, prices are only growing at 1/2% on a yearly basis.  Not much to get excited about, unless you are a buying waiting to get into this market.  Months of supply came in at 7.3 month, which would imply slight (very slight) downward pressure on prices.

If you are a buyer and you’d like to know the best time to buy, give me a call and we can go over the facts.

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12.8% of Residential Properties in Des Moines are Underwater

Posted by adamvanlin on September 13, 2011

According to CoreLogic, 12.8% of all residential properties with a mortgage were in negative equity for second quarter 2011.  An additional 8.1 percent, or 8,575, were in near negative equity in Des Moines-West Des Moines.

Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity mostly occurs because of a decline in value of the home.

High negative equity is holding back refinancing and sales activity and is a major impediment to the housing market recovery.  Those underwater are more likely to stop making payments and walk away from their home, adding to the foreclosure market.

How do we fix the problem?  John Hussman has been advocating for PARs for several years now.  According to Hussman,

“Suppose a $300,000 mortgage is in foreclosure (or the homeowner and lender can agree to the following arrangement outside of foreclosure court). A reasonable mortgage restructuring might be to cut the principal of the mortgage to $200,000, and to create a $100,000 PAR. The homeowner would agree to pay off the PAR to the Treasury (and administered through the IRS) out of future price appreciation on the existing home or subsequent property. The homeowner would be excluded from taking on any home equity loans or executing any “cash out” refinancings until the PAR was satisfied. The maximum PAR obligation accepted by the Treasury would be based on the value of the home and the income of the homeowner.”

Sounds better than anything else out there.

If you are underwater but would still like to move into a different house, give me a call and we can talk about your options.

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