From Josh Cantwell - The Strategic Real Estate Coach newsletter 04/26/2010.
The most recent downturn in the housing market is far greater than during any other recession in our recent history – 1981, 1990, 2001. While there are glimmers of an upturn thanks to a slight turnaround in delinquencies and total foreclosures, the state of the housing market as a whole is still grim. As you can see by the chart below, the percentage increase in foreclosures over the past recessions paints quite a picture. In less than a year, the percentage increase in foreclosures since the previous peak was more than double any other recession.
This housing crisis is not limited geographically, as has happened in the past. It is being felt everywhere. Several factors contributed to result in this “perfect storm” of foreclosure rates. Falling home prices, which led to a negative equity position, combined with dramatic and sustained job loss, which means more instances of default and foreclosure. The loss of jobs (as opposed to the number of people without jobs) and the length of unemployment spell trouble. In a recession, unemployment duration rises. The percentage of the work force unemployed for at least six months rose to 4.3% of the total labor force, up from a previous high of 2.6% in 1983. The $75 billion government program designed to help distressed homeowners has had little impact so far, in part due to poor design. We’re on pace to exceed 3.7 million foreclosures this year. The rate of secondary default is very high because unemployment is still a looming issue. There’s still a long way to go to get out of this “Great Housing Bust.”
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
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