The Housing Market—Is Stability on the Horizon?

By Amy Ransdell

There are a lot of hopeful reports floating across the media that point towards housing recovery.  The National Association of Realtors reported that the Pending Home Sales Index jumped in April by the most in more than seven years.  The pace of job loss significantly slowed in May, housing sales are up and so is consumer confidence.  But don’t put on your ruby slippers quite yet.  The end of this recession is still a long way off.

In the meantime, there can be no whining while we wait.  We are in the business of housing recovery—and it is through our efforts in the market that recovery will be pushed along.

The number of foreclosure filings rose 18% in May from a year earlier according to RealtyTrac.  According to the Mortgage Brokers Association, close to 1.4 percent of first mortgages on US Properties entered foreclosure in the first quarter.  This is a 20% increase over the previous quarter.

Foreclosure are causing neighborhood values to decline an average of $7,200.00 per home affecting more than 69 million homes at a total loss that could end up as high as $500 billion dollars. Some experts have predicted that foreclosure filings would affect an estimated minimum of 91 million homes over the next four years.  No matter where you live and work, if you own property, you are already or are going to soon feel the effects of the ‘foreclosure’ crisis.

Surprisingly, it is now prime fixed-rate loans that represent the largest share of new foreclosures.  These are loans taken out by people with excellent credit who never dreamed of getting in financial trouble.  They are now having their lives turned upside down by the dangerous cycle of rising unemployment and falling home prices.
In the past, it was always blighted areas and less fortunate people that accompanied the stigma of foreclosure.  However, the big priced properties are also unscathed from the market turmoil.  The National Association of Realtors has said that there are enough $750,000+ homes on the market to cover more than 40 months’ of demand at the current rate of sales. “That’s four times the rate of oversupply in the housing market as a whole.”  The families in that segment of the market have generally depended on two incomes and full-time employment in their careers of choice.  So, they can’t cover the mortgage when one is out of work.
Now— back to “No Whining.”

Did you know that 7 out of 10 people who are in a must-sell situation but who are over-leveraged or in default do not seek the assistance of trained real estate professionals to help them?  Many simply do not even know that people like you and me exist.  They need us to assist them out of and through their tough situation.
There are unlimited choices and niches of the market in which to specialize your services…from multi unit properties to million dollar plus properties.  Your services can range from loan modifications to loss mitigation to wholesale short sale investing to short sale listings.  Generating leads for each niche has never been easier.
The combination of the housing mess, your focus on the needs of distressed sellers, increased Buyer confidence, and a professional online short sale management tool like ManageMyShortSale.com will mean success for you and your team in this market! For more real estate industry articles and videos visit www.RealEstateBusinessMentors.com or visit www.AskBobLachance.com for any real estate questions.