In a housing market that rivaled the impacts of The Great Depression, homeowners and homeowner helpful alike are concerned. Can they hold onto their homes? Will they ever be able to stop renting? Here’s a look the factors involved in this century’s housing crisis, what brought us here, where we are now and what the future holds for US real Estate.
By the end of 2010, 23.1 % of mortgage-holding US homeowners owned more on mortgage than the value of their homes. Then February 20111, witnessed the largest housing decline in over a quarter of a century. Four months later, in June 2011, home prices had fallen 33% since the first decline.
It’s worth noting Home Sales have declined 80% between the peak in July 2005 and early 2011. Over 8 Million Americans are at least 1 month late on mortgage payments, while 5 millions are at least 2 months late.
Here’s a brief look at America’s five most miserable cities:
Miami, FL : 49% of homeowners are underwater on their mortgages.
West Palm Beach, FL : Home prices are off 50% since 2006.
Detroit, MI : Home prices are down 54% in past three years
Flint, MI : Flint razed 775 abandoned homes between Oct. 2010 and 2011
Sacramento, CA : Foreclosures are among the 10 highest in the country.
54% of Americans believe a recovery is at least two and half years away. Zillo Predicts 3.7% decline in housing prices until hitting rock-bottom in 2013, where the market will stay through 2016.
Some Interesting facts about foreclosed properties:
- Banks own more than 900,000 residential properties, 600,000 of those are not in market.
- Over 1 in 10 US homes are vacant.
- Over 4 Million properties are on road to foreclosure.
- 9.5 Million More houses are currently at risk of default.
Today average foreclosure is processed in 673 days, that’s three times the amount of what it took in 2007.
Some Real Estate tips to turn the crisis round:
- Buy homes within your means.
- Reign in your financial habits.
- Be comfortable with renting.
- Research the risk and responsibilities of Mortgage.
Infographic by Bank of the Internet
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