Have We Reached the Floor in Housing?
April 16, 2009
The recent uptick in real estate activity has really started to bring out the optimists. I follow CNBC, the NY Times, and the FOX news organizations fairly regularly. It hasn’t been until recently that I started to see stories with a positive tone regarding the housing market or the economy. Who knows, maybe it’s that spring is here and flowers are blooming outside and better weather is upon us. Needless to say, the recent rash of positive stories started to get me thinking of whether we actually might be at or approaching the bottom of the market.
As I thought more about this possibility, I jotted down reasons for why people are considering this to be the bottom. Here is what I came up with:
- Inventory numbers are decreasing
- Open houses are bustling with more potential buyers
- Properties are spending less time on the market
- Interest rates are at historical lows
These are all good signs. Unfortunately, there are two things that are holding us back from becoming a true believer – foreclosures and short sales. There appears to be some misleading information out there that the number of short sales and foreclosures coming on the market have slowed considerably.
One site, Trulia offers to explain this information. Trulia recently reported that despite the large volume of foreclosures (see the list below), there has been a significant drop in the number of foreclosure properties coming on the market in some states.
- Las Vegas, NV (31,983)
- Phoenix, AZ (19,075)
- Chicago, IL (16,038)
- Los Angeles, CA (9,913)
- Sacramento, CA (9,346)
- San Diego, CA (7,668)
- North Las Vegas, NV (6,852)
- Bakersfield, CA (6,744)
- Miami, FL (6,699)
- Tampa, FL (6,487)
- Indianapolis, IN (6,377)
- Stockton, CA (5,924)
- Atlanta, GA (5,859)
- Orlando, FL (5,855)
- San Jose, CA (5,802)
What is the central cause of the drop?
According to the Trulia article, a number of states are Read more
Everyday, struggling homeowners call foreclosure and loan mitigation hotlines for help on how to save their homes. This is just a small sample of a larger problem. Foreclosures, short sales, adjustable mortgages, and financial or personal hardship have wreaked havoc in the marketplace. The need for loan mitigation is paramount.
At Loan Mitigation Advocatessm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, help you, the homeowner, stay in your home.
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