The U.S. home market is yet to fully start recovering. Problems continue to pressure it despite ten real estate markets leading the path towards general recovery and stability said the National Association of Realtors. The slow economic recovery resulted to new defaults and foreclosures after 5 continued quarterly drops. October foreclosures went 14% higher from 2nd to 3rd quarter, said Realtytrac.
It may not be like the 2007-2010 foreclosure pattern but it has to stop in areas that are hit the hardest where homes have already lost more than half their value. Sounds like a good time to buy but uncertain employment and stricter lending standards are discouraging buyers. Third quarter jobless rates were above 10%. Realtor.com’s 6 out of 10 top turnaround towns (4 are Florida’s largest cities) are yet to fully recover. While at its lowest, home mortgage rates at 8% are relatively higher than home prices. Buying cost that includes 4% interest rate and the 3.9% home price dips scare buyers away.
Unemployment, high housing count and foreclosures also affect areas that are without extreme price accumulation. Price decreases were established by Realtor.com in cities like Chicago, Detroit and Atlanta. Remortgage America is asking the government to grant mortgages at 1% for Americans to finance a new or existing home. Some wish Fannie Mae and Freddie Mac to take and auction foreclosed homes or sell them in a big fire sale. About a quarter million American taxpayers help sustain the two agencies which came under the U.S. Treasury in 2008. Their fate, whether to be restructured, liquidated or privatized, is yet to be decided upon by the Obama Administration. Another solution to the housing problem is to have foreclosed homes offered in rent-to-own contracts with reasonable leases toward a purchase.
About 3.4 million foreclosed homes will be listed in banks and mortgages companies’ records by December. While regulators, banks, mortgage companies and state attorneys general attempt to clear mortgage changes, properties will not be properly priced until all government limits on sales and re-financing are lifted.