What's Slowing the Housing Market Recovery?
There was hope that the housing market would recover a bit in 2010 but it seems that the year has been pretty flat lined compared to last year. Yes, all markets saw a jump in sales due to the tax credit and then the markets plummeted to record lows from May through July.
We have seen slight improvement since the summer months but the recovery is definitely happening slower than we would want and slower than what was forecasted.
If interest rates are at record lows and home ownership affordability at a record high, why aren't there more buyers?
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Low credit scores- many people would like to take advantage of this market but the percentage of Americans with low credit seems to be a real issue and they are unable to obtain loans
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High Unemployment - this number is starting to lower slightly but the economy needs to add around 100,000 jobs a month just to stay even with the work force that is entering the market. The economy has lost millions of jobs over the last few years
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Consumer confidence - many are worried about a double dip recession and those with jobs are not seeing the income growth that they had expected
High unemployment is probably the most powerful factor here in North Carolina. We have got to create jobs.
The economy will get better...it has to. Some markets that were hit early by this recession are already showing positive signs of recovery. Many of the large banks have suspended foreclosures in 23 states until they rebuild their systems to be sure that they are being fair to the states' economies.
I agree. Also, 1099 people and small business people in many cases do not qualify for a loan.
I run into the low credit scores a lot here in northern Michigan. Add that to the high unemplyment rate and it's no wonder we are slow.
Approximately 90% of all purchase money loans this year have been through Fannie, Freddie and or FHA. Those underwriting standards have been turned into the "New" sub prime at taxpayer expense. Zero, 1% and or 3% down payment, credit scores in the mid 500's and don't forget the first time home buyer tax credits from the fed and the state. The governments involvement in the housing industry is killing it, just like health care, postal service, education, auto industry and on and on....
Next up, fire sale properties from you guessed it Fannie, Freddie, FHA and FDIC. Fannie has been kind enough to offer a "Deed for Lease" program. "We're Screwed"!
Lori ~ Thanks for commenting. 1099 people are definitely having more trouble obtaining a loan along with everybody else. I am not sure I can blame the lenders for tightening their guide lines on these people though.
Randy ~ It is good to hear about what you are seeing in different parts of the country. We are slow but the train is moving again.