The housing market has made a big comeback this year! Home prices have increased approximately 8 percent and interest rates have hit record-lows. However, some experts worry that the housing market will crash just as quickly as it has surged.
Below are three main reasons industry experts worry the recovery might not last.
1. Investors are leading the housing market recovery. Investors have been taking advantage of low interest rates by buying up a huge portion of the real estate inventory. However, when prices begin to rise, economists believe that investors will likely pull back. Many believe an investor-driven boom led to the original housing bubble.
2. The economic recovery is not strong enough, yet. There are many factors within the economy that can still hurt the housing market, such as employment. After gaining some momentum during 2012, the job market has been showing signs of weakness in recent months. Once the job market picks up, the housing market should gain some strength.
3. Government cuts will hurt homeowners. The housing market recovery will be greatly affected by the $85 billion worth government spending cuts. The cuts include unpaid days off for federal workers, cuts in unemployment compensation and decreased military spending. All of which will lead to job and income losses.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the website, Kingcade & Garcia, P.A.