How Long Will Foreclosures Plague Our Real Estate Market?

For two years now, foreclosures have inundated the national housing market and undermined price stability across the country. Many homeowners are left wondering when all of this turmoil will be reigned in, and sanity rule in our markets again. These is no easy answer for this great question, but watch for these indicators to return and signal a recovery on the way.
Unemployment Highest Quality Home Builders
Right now unemployment is killing our housing market. As people lose their jobs, they will inevitably lose every financed possession they have if they do not find work soon thereafter. Despite interest rates being extremely low and the federal governments institution of the first time home buyer tax credit, the housing market is still struggling to find solid ground. As past faithful homeowners lose their homes, banks are trying to staunch the bleeding by putting homes that would normally add weight to the already heavy load of REO properties on the market, using loan modifications and even loan forgiveness. But, when homeowners do not make enough money, how can they pay for even the best loan modification. Until unemployment gets below 6% nationally do not bet on a real estate recovery any time soon.
Stock market indicators
The stock market is trending back down lately, which will not help the real estate market. During the boom years, many investors were taking money from their Self Directed IRA’s or Roth IRA’s to purchase property for fixing and flipping. Since the market has went down so far, they simply do not have the money to do this anymore. Until the stock market gets above 11,000 look for the real estate market to remain soft, and to give us as much unpredictability as the stock market.
Taking these considerations into account in your financial planning will help you Mobile Home Purchase Agreement avoid financial problems and may show you the right time and place to buy!

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