The Current US Real Estate Market Is Slow
The current position of the US property market is not at all encouraging. Even as many homeowners persist to live the dream, there are already indicators on the way that a major reality check will happen soon. In 2007, a massive 1.5 million were expected to lose their homes, and many US residents will be financially scarred in the years to come.
Key Indicators of a Slow Real Estate Market:
• Struck by the mortgage downfall, the greater part of the US housing market is in serious crisis plagued by an outbreak of foreclosures. This will worsen if government authorities do not continue to intervene.
• The US foreclosure crisis is already hitting the majority of local housing markets. Housing Predictor forecasts that foreclosures will increase twofold with a total of 5.6 million homes by 2011. The forecast is the outcome of an exhaustive analysis of all 251 housing markets, which Housing Predictor tracks on a regular basis.
• A recent private survey shows that, almost 20 US Metropolitan areas are experiencing slump in property prices. The numbers of foreclosures are increasing in the US almost everyday. In some areas, foreclosure is affecting almost one out of every 200 home-owners.
• The situation has grown from bad to worst that nearly 2 million homeowners have already been forced to leave their homes, and more millions are feared losing their properties by way of foreclosure.
• The Federal Reserve in an attempt to help the ailing US economy has considerably slashed the interest rates. However, it appears to be counting on exclusively reducing interest rates as the reaction to the foreclosure crisis.
As a direct result of the crisis, more than 175 lending institutions have defaulted on their obligations.
That said, markets go through different cycles of growth and contraction. While people always look for the next expansion period, there are many opportunities in both kinds of markets. With the right kind of training and knowledge, people can take advantage of these chances.