The Housing Markets Aren’t Bouncing Back

 

Prices and sales in the housing market appear to be grim through 2015 according to economists, builders and others in the industry. The biggest drop already occurred in 2008. Ancillary industries such as landscaping, mortgage lending, and home improvement feel the loss as well.

Prices will most likely drop another 2.5 percent this year and possibly rise at a rate of 1.1 percent over the next three years. As reported by Nick Timiraos for the Wall Street Journal, one in five Americans owe more on their mortgage than their house is worth and foreclosures are mounting. Until consumer confidence rebounds there is little hope of improvement. Another negative in that area was zero job growth in the last quarter. In the current atmosphere few homeowners see any value in home improvements ? a job creator if homeowners felt it would be worthwhile.

For the intrepid few who need a loan to do needed improvements or refinance, the paperwork involved and credit verification process is a part-time job in itself. Fannie Mae and Freddie Mac have tightened their standards for fear that any mistakes will come back to haunt them – again.

Meanwhile the government struggles to come up with a way to unload all the foreclosed homes it owns and stimulate economic activity. Some areas of the country are worse than others, especially Nevada, Arizona and Florida. These states are commonly considered retirement and “trade up” areas. When a current home cannot be sold moving is not an option. The best bet for those who do try to sell are investors with cash who buy at a discount.

Page Perry, is an Atlanta-based law firm with over 150 years of collective experience representing investors in securities-related litigation and arbitration. Page Perry’s attorneys are actively involved in counseling institutional and individual investors. For further information, please contact us.