Home sellers will face sagging prices5 of 7Selling a home will be a challenge due in part to a dearth of qualified buyers and the huge "shadow inventory" of homes that are stuck in the foreclosure process, but not yet on the market. If those dynamics and high rates of unemployment persist, so will the downward pressure on home prices.Lower prices may attract more buyers, but many of them won't be able to qualify for a home loan. Lower prices could also increase the supply of for-sale homes if more owners walk away from their mortgages."I don't see any positives" for home sellers, O'Toole says.<< Back to Housing and mortgage trends in early 2011. Related Articles:Low score = high paymentQuestions galoreBuying your first home5 mortgage questionsRelated Links:Mortgage calculator usesIs a vacant home a value?Selling in a soft marketSpot a turnaroundadvertisement
Selling a home will be a challenge due in part to a dearth of qualified buyers and the huge "shadow inventory" of homes that are stuck in the foreclosure process, but not yet on the market. If those dynamics and high rates of unemployment persist, so will the downward pressure on home prices.
Lower prices may attract more buyers, but many of them won't be able to qualify for a home loan. Lower prices could also increase the supply of for-sale homes if more owners walk away from their mortgages.
"I don't see any positives" for home sellers, O'Toole says.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
Feeling lost in the mortgage wilderness?