There are still problems galore when we are talking about the national real estate industry. In spite of the industry’s best efforts to keep buyers engaged with fruitful mortgage rates, buyers are still not falling for it. This has become a major distress for the market as well as the industry.
As compared to last year, home prices went up by 12 percent which is considerably good. But the fact that only a 0.6 percent stroll on a month-to-month basis was observed in prices is what keeps the industry under pressure.
A minimum number of foreclosure homes depict fewer properties in the foreclosed category. What is helping the numbers to stay low is the amount of good jobs, a jump in prices of homes and a lesser amount of bad loans.
Although the common man is still not interested in spending for a second home, he is still spending otherwise by investing money on his existing property. People are now not focusing on taking loans for a new home; they are rather inclined towards other aspect. This is a major concern.
Annually, foreclosure start hiked in 38 states across the country. Nonetheless, states like Oregon, New Jersey, Maryland and Connecticut still saw an increase. On the other hand, the third quarter of the year saw the amount of foreclosed homes go all the way down to their worst number in the last seven years. Compared with the previous quarter, the foreclosure started slipping down to 13 percent.
Still, over 12 million properties are still hiding under the surface. And around 24 percent of them have negatively imparted mortgage. Single-family homes’ developing mortgage misconduct have spiked up to a rate of 9.41 percent which is considerably high as compared to previous years.
What else is disrupting the market’s condition is the spike in interest rates which has taken place recently. The rates are going up, and potential first-time buyers are being warded off due to this aspect. People now prefer to rent instead of buying. The largest segment of the market’s economy comprises of first-time buyers. If there aren’t any first-time buyers, there won’t be any recovery.
The basic components that constitute a healthy recovery for the market are still unseen. Since 2012, prices are being spiked up by investors. This aspect is pacing the activity in the market. Unfortunately, this is not a healthy sign.