The latest in the U.S. Housing Market
The housing market proved to be a "tough one" for the sellers of homes in US back in 2011. Given that January 2012 has only 24 hours remaining, how does the US housing market fair so early into the New Year?
President Obama announced just this past Tuesday that he's asked the Justice Department to create a special unit of prosecutors and state attorneys general to investigate abusive lending and packaging of risky mortgages that led to the housing crisis. He's tapped an avowed Wall Street enemy, New York Attorney General Eric Schneiderman, to help run the crime unit, according to a White House official.
On top of the 2.5 million homes that have already fallen to foreclosure since the bubble burst, another 4.5 million mortgage holders have given up paying and are likely to lose their homes... this according to CNN Money
Millions of more homeowners are underwater -- owing more than their home is worth -- and may give up if things don't improve soon. All told, more than 10 million of the nation's 55 million mortgage holders could default by 2018. If home prices fall much more than the 6% or so she's projecting over the next 12 to 18 months, the picture worsens, as more foreclosures drive prices down further, in turn causing more sheriffs' sales.
Research into who defaults shows that many governmental and private efforts at saving borrowers -- and reducing investors' losses -- by modifying mortgages weren't helping because they only extended payments or reduced interest rates. They didn't fix the fundamental problem of unsupportable debt loads.
So where are the best deals to be found in the 50 States of America???
America’s Worst Zip Codes for foreclosures belong to the Western States (California, Nevada, Arizona). In Fontana, California's 92336 zip code, the average home price has been cut in half since December, 2007, according to the real estate web service Zillow. A four-bedroom, 2,000-square-foot house, was recently listed for $200,500, down 57% from the $465,000 it last sold for in October, 2007.
So how does the sunny State of Florida in the US Gulf States fair??? In a neighborhood like 32811 (Zip Code) in Orlando, Fla., which counted 275 homes with foreclosure filings in just one month last year, home prices have plunged dramatically. One thre-bedroom in the area is currently listed for just under $40,000, for example. In 2005, that same home sold for $120,900, according to real estate agent Jerome Baker.
Not only that, but the listing price is "a little bit on the high end," said Baker. "We'll probably have to lower it to $29,000 to generate some interest."
As told by the local real estate experts, "it will continue to be a buyers market in most of the United States"...but what about us here in BC.
With domestic mortgage and interest rates expected to remain near record lows for most of 2012, it’s still a good time to buy a house in British Columbia. First quarter results for 2012 show the province’s resale housing market is humming along with average results and prices forecast to remain relatively unchanged over the next 24 months.
“Modest economic growth at home and abroad is expected to limit growth in consumer demand both this year and in 2013,” said Cameron Muir, chief economist for British Columbia Real Estate Association (BCREA).
B.C. Multiple Listing Service (MLS) residential sales are forecast to increase 2.1% from 76,817 units in 2011 to 78,400 units this year, increasing a further 2.7% to 80,500 units in 2013. The 15-year average is 79,000 unit sales. A record 106,310 MLS residential sales were recorded in 2005.
“While European sovereign debt concerns and a sluggish United States economy will continue to impact consumer confidence, strong demand in the bond market is expected to keep mortgage interest rates at or near record lows for most of 2012,” added Muir.
Home prices in most B.C. markets are forecast to experience little change over the next 24 months as the supply of homes for sale more closely matches consumer demand.
The average MLS residential price in the province is forecast to edge down 2.2% to $548,500 this year and remain relatively unchanged in 2013, albeit increasing 0.8% to $553,000.
Remember, if you're looking to buy or sell a property, call the local economist & tech savvy agent: Rob Cvitanovic (sit`an`oh`vik) of Re/Max Alliance (250) 704-6970.
We're known for "Bringing Home Guaranteed Results"





