Feb 22 2010
Is the market movin’ on up?
Could the real estate market be showing signs of recovery? I have reported a few times how the market is taking upticks and such but great new numbers came out Friday about the number of homeowners falling behind on their mortgages that show positive signs of life.
The drop in the amount of homeowners falling behind on their mortgages means the number of people losing their homes will start to fall as well. Basically the entire country will suffer from the market crash for years to come. Because millions of people have been foreclosed on or are in foreclosure now, big discounts on properties puts pressure on sale prices for many years to come.
We will continue to see the housing market recover but it is going to be a long, gradual process.
Although areas like Las Vegas, Phoenix, and Miami have seen values of their properties lose approximately half their value, research is also showing that Arizona and Florida are seeing some of the biggest declines in new delinquencies. Some say that the new numbers are marking the beginning of the end but homeowners are not sure if it is time to breath a sigh of relief just yet. It is being reported that more than 15% of homeowners have either missed at least one mortgage payment or are in foreclosure. Of the delinquent borrowers, nearly half are at least 3 months behind.
“The percentage of borrowers who missed just one payment on their home loans fell to 3.6 percent in the October-to-December quarter from 3.8 percent in the third quarter, according to the Mortgage Bankers Association.” That decline was even more surprising because delinquencies usually rise at that time of year due to higher heating bills and holiday spending.
