Website Traffic Predicts Foreclosure Tornados

Posted in Foreclosure, July 8th, 2007 |

Duane LeGate of House Buyer Network, guided by the crowd on his website predicts the direction and inclination of the brewing storm to help those about to get sucked in by quick sales. He can forecast happenings to take place nine months on. Today Orange County and Florida are in the eye of the storm. Orlando has burst its seams with 700% increase in foreclosure filings.

The finger pointing to the future predicts increase in foreclosure numbers having its impact on lower prices and slower pace of sales.

An owner wanting a quick sale is connected via the network to an agent who gets an appraiser to value the unit. The agent now markets what has been appraised at $200,000 for $195,000. If by the agreed upon time the house is not sold then the agent buys it off at a previously pre-arranged price of say $180,000.
LeGate’s predictions are ahead of the current price figures.

According to an Orlando realtor’s association the prices in the first quarter rose by 2.5% in comparison to the previous year pointing to a weak but stabilizing market. But LeGate has faith in his own system of telling the future.

Redbrick Partners, another realtor firm agree with LeGate. It opines that the taxes start to bite as soon as ownership changes hands. This combined with the increase of insurance rates following the hurricane calamity few years ago has further depressed the market.

Mortgages are weighing heavily on the owners. The sub-prime hybrid floating mortgage rates went awry. The initial low rates vanished to be replaced by steep hikes.

Short sale interest rates are better indicators of the market graph than traditional price indices. In most cases deals close quite some time after prices have been agreed upon. The considerable discounts will not show up until a time lapse. When LeGate notices that from a single county more and more clients are establishing contacts he concludes that the region has gone down to low levels from which it is unlikely to surface within few months. From experience he can calculate the effects of the ups and downs. His predictions came true in the case of Phoenix and Arizona. Other brewing trouble spots are Clark County, Nevada and Riverside County, California, Price George County and Maryland.

There are some markets that are beginning to make a U turn – Phoenix, Prince William County, Virginia and Fairfax County.

Via