New Housing Statistics Appear Grim
July 13th, 2010
Last week we talked about the waning home sales in America. They fell 30% from May to June. Those videos were filmed on Monday, July 5th and ever since that point in time there have been a lot of articles supporting what we are saying.
To begin with, if you took our episodes last week to think that you should run and hide from this situation, you are totally wrong. We communicate this information with you so that you can face this market head on. We’re simply trying to be realists and move our strategy as the market changes.
One critique notes that the US economy appears to be in turmoil as the effects of gov’t incentive are already wearing off. Also worth noting is that a double dip recession is extremely improbable due to past precedents. Nonetheless, Kevin wonders aloud how we can undergo a double dip recession if our market never improved. The economy has consistently been appalling. Also mentioned in other articles was the national mortgage deliquency rate. It grew to 9.2% in May, up 2.3% from a month previous and up 7.9% from a year earlier. This makes you conjecture how mortage deliquencies are going up, but there was a rise in our economy.
When we study articles like this, understand that there is an opening to help people out. Don’t run and be scared. There will always be purchasers and there will always be sellers. People have to have a dwelling to live in. Every home is viable at the suitable price.
It is important to note that the non-current mortages are in reality at a 12.4%. That is awful, because the historical average is close to 1%. One other great statistic to note is that the average quantity of days elapsing between when a mortgage becomes 30 days deliquent to foreclosure sale reached a record high of 449 days. So, from the point that a home owner is a month behind in payments, they are not losing their home for 14 months on average.
We will also be teaching a Short Sale Crush It class that continues to get better. Preregister for that August 13th session at shortsalepowerhour.com
If you have questions, get your Short Sale questions answered by Short Sale Specialists.
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For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.
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Fred Weaver is a founding co-owner of Group 46:10. He has been working in the financing/real estate business for over 7 years. Fred began his real estate career by working for a large wholesale bank as a processor and rate/lock specialist for home mortgages. After 2 years in the business, Fred transferred from the banking side of home loans to the mortgage side. While on the mortgage side of financing, Fred gained experience originating mortgages and processing files for Morgan Capital of Arizona, Inc.
Kevin is a founding co-owner of Group 46:10. He began working in the real estate business in 2007 after spending 8 years working in the finance industry for companies such as Bank One, Green Tree Financial, & GE Capital.