I wanted to post the following mortgage reset chart for the housing market. The point of looking at mortgage resets is not to discourage you, but rather provide you with facts so that you can decide for yourself. You deserve nothing short of the facts. This chart shows the amount of mortgage resets coming due (by category) over the next several years.
There are 2 key takeaways to consider:
1) If you ARE renting and worried that you need to buy now in order to get a good deal, I would not feel rushed. The general trajectory for housing will be down until the banks work off these bad loans. That looks to be at least the next 2-3 years.
2) There are and will continue to be good deals in the Real Estate Market- If you are looking for a home the key will be patience and making sure you find a deal you can afford and a place you will want to remain for at least 5 years. Why? Remember, housing is one of the most illiquid markets during a slowdown, meaning you should assume that you will not be able to sell a home for a long time. This is no longer a flippers market. Also, as these mortgages come due, most people will not be able to do the typical mortgage refinancing or home refinancing they were accustomed to over the last several years. This is because most of the aggressive home refinancing mortgage products are now gone.
Still, there will be good deals as banks will eventually be forced to get their ever increasing foreclosures cash flowing again as the following mortgage reset chart shows.
Click to Enlarge.
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