Fewer homeowners are falling behind or defaulting on mortgage payments this quarter. Over the past year, the number of homeowners falling behind has dropped steadily, and has now reached a three year low. Still, homeowners that bought their homes during the housing crisis of 2008 are most likely to fall behind on payments. Experts also warn that the foreclosure rate is rising, despite evidence to suggest that homeowners are growing more able to make monthly mortgage payments.
Newly constructed homes are being appraised even below their construction cost, says a new survey by the National Association of Home Builders (NAHB). Homebuilders say that faulty appraisals have helped the market recover more slowly. These poor appraisals, too, mean that banks are less willing to lend money to developers, since many are taking losses on their investments. The NAHB says that by appraising these homes under construction value, appraisers are hurting the recovery. According to the NAHB, for every one hundred homes built, developers can create more than three hundred full time jobs. Without sufficient funds, developers are less able to continue building and thus, less able to create jobs.
When buying or selling a home, listening to national real estate trends can be downright disheartening. But do those trends really apply to your home town? Sometimes, experts say, they don’t. The best way to know the consequences of selling or buying property is to research how your local housing market is doing. Markets don’t only vary by region—they can also vary between counties, towns, and school districts. Looking at comparable home sales over the previous weeks, months, and years will give you a grasp of just how your market has been effected, and can also provide you with knowledge of where to look.
As home ownership rates continue to fall or remain low, more and more Americans are renting property—rental rates are currently growing at 5% per year. With this in mind, investors are buying up property that will attract renters in the short term and that can be sold for a profit in the long term. While potential home buyers worry about the state of economy and unemployment, rental properties are up for the taking. And they’re an attractive solution: affordable and easier to leave than a full-blown mortgage payment, they allow potential homeowners grow accustomed to making monthly payments without fearing more severe economic problems. Right now, rentals are putting money into investors pockets- money that can be used to buy more property, kick starting the market once again.
Baby boomers are more and more willing to help their children and grandchildren become homeowners, according to a recent survey. Twenty percent of baby boomers have already helped family members buy homes already, and more than two-thirds of boomers want to provide family with home buying assistance in the future. The help comes primarily through giving money to help with down payments or mortgages. Boomers say that the primary reason for giving is so that their children and grandchildren can fulfill the American dream.