Non-forclosure/short sale real estate sales, are they ever happening again? (Atlanta: short sales, foreclosures)

[qualityoflife]

I am interested in what others are thinking about the real estate situation here in metro Atlanta, specifically Cobb County. From my viewpoint it seems there are an excessive number of foreclosures and short sales and that buyers have become completely ridiculous in their expectations of what they can get both for their dollar and from a seller. I'm sure many of you have heard some unbelievable stories.

Not to mention it seems as if a ton of realtors have jumped on the bandwagon of short sales and foreclosures and are actually encouraging prices to drop. Many seem to collect as many short sales as they can, spend virtually no money marketing and just figure eventually some of them have to close and they'll get their commission. I know they need to earn a living, but come on.

Impressions of the overspending and the constant moving up mentality in the area that we have noticed since moving here, seem to be playing out in some serious repercussions. Not so sure if this area isn't going to experience a double dose of foreclosure/short sale due to the buyers overbuying! For expample, if you normally could afford a $250k home and because you now can get a $400k home for that much. Have you considered the taxes, heat/a/c costs yard maintenance, home maintenance etc. of this more expensive home? Otherwise you'll be the next short sale.

How are we going to recover if this continues to be the case and to top it off, if reasonably solid buyers can't qualify for loans? We will be stuck in this awful place for quite some time if something doesn't change soon.

I realize I didn't address the unemployment issue. Feel free to comment regarding that too. Obviously people need jobs to stabilize the housing market.

[qualityoflife]

So our realtor just gave us the grim news that metro Atlanta has topped Las Vegas in foreclosures.

[WOWAddict]

I think the magic number is going to be 7-9 years before things get back to a normal (pre-housing bubble).

Because not only do you need the job market to return. The credit record of people who lost their homes need to be cleared so the mass population can buy homes again.

Its a long time to wait I know.