| There have been many factors that have caused the | | | | all the legalities involved. The home owner then would |
| United States housing market to crumble. Housing | | | | have to count this reduction of loan value as income |
| prices have fallen substantially in the last four years. | | | | on their taxes. So these factors are still hampering the |
| Credit crisis, bank lending practices, government | | | | markets recovery. Most do not see these factors |
| mandates, and greed has all played a part. The | | | | improving during 2010. |
| question is will 2010 be the year in all turns around. | | | | Fear |
| Foreclosures Factors | | | | Many home buyers are simply afraid still to purchase a |
| Unfortunately today the housing market is still stifled by | | | | new home. They are afraid they will lose their job or |
| the huge inventory of foreclosed housing still available. | | | | that the recession will get worst. Some home owners |
| This factors means there are a lot of homes available | | | | are afraid that if they buy a home today its value will |
| at steep discounts. Some of these bank owned | | | | still be declining to all the above factors. Thus fear is a |
| properties are new homes that bank has had to | | | | reason that causing home buyers to really think |
| foreclose on during the construction phase. There are | | | | through their new home purchase. Plus some that may |
| a lot of bargains still in the market. Economist have | | | | qualify for a home loan is even worried that they may |
| predicted that there are still more foreclosures to | | | | not qualify for a bank loan so they simple do not want |
| come. Many people still are unemployed or have had | | | | to go through the process of being disappointed. Banks |
| to take pay cuts to remain employed. The | | | | are tougher than they used to be but they are starting |
| unemployment rate today is 9.7%. This is not a good | | | | to lend again. However consumer's lack of confidence |
| sign. Therefore as long as there are numerous homes | | | | is the housing market for now will also be negative for |
| in foreclosures the housing market may continue its | | | | the housing market to recover. |
| decline in both value and in sales buy nervous would | | | | Reality |
| be home buyers. | | | | The housing market will most likely show some |
| Loss of Home Values | | | | promise of recovery in spring of 2011. Jobs should start |
| Many people have traditionally lived in a home for a | | | | coming back. Stocks are showing some |
| few years then sold their property at a fairly good | | | | improvements which will turn in to new jobs probably |
| profit. They normally used this profit to buy or upgrade | | | | this fall. Most expect foreclosures to slow down after |
| to a better home. The challenge today is just the | | | | August of this year; due to the expectations that the |
| opposite. Banks are requiring larger down payments | | | | worst is just about over. So, most see the housing |
| especially if one's credit is less than perfect to qualify | | | | recovery not rebounding until 2011. |
| for a loan. Today when people are selling their homes | | | | Opportunity |
| many have loss all the equity they had originally when | | | | For a person in an opportunity to invest; 2010 may be |
| they bought the home. So it's difficult to come up with | | | | a great year. There will be many bargains to be had. |
| the down payment as the same home owner would | | | | People who can afford a second home' perhaps in a |
| have been able to in the past to upgrade to a better | | | | resort area such as Big Canoe, Georgia this may be |
| home. This puts a big damper on the housing markets | | | | the perfect time. Home prices are down. Now is a |
| recovery. Also many home owners are now turning to | | | | good time to call a real estate agent if you are in this |
| short sales to get rid of their homes. This is where a | | | | position as see what deals are in the market place. |
| bank agrees to let a home owner sell the property | | | | There are also some new home owner incentives the |
| less than what is owed on the property. This method | | | | government is offering that you should inquire about. If |
| allows home owners to get out of a situation where | | | | you are a seller holding on to your home may be your |
| they are over their head. The bank still takes a loss but | | | | best way out for another year. If this can be done it |
| usually not as large as a foreclosure would be due to | | | | may be wise to do so. |