Record home prices and slow growing incomes are two of the driving factors affecting mortgage affordability for so many today.
A median household would need to spend 32.1 percent of its income on mortgage payments for a median-priced home, according to the Federal Reserve Bank of Atlanta. That marks the highest percentage since November 2008, according to the Wall Street Journal.
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.
Click here to read more on the three reasons why the housing market recovery might not last.
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.
September marked the eighth straight month where single-family home prices rose on a national scale. The S&P/Case Shiller composite index measures 20 metropolitan areas such as Miami, New York, Chicago, Las Vegas and Los Angeles. On a seasonally adjusted basis, September showed a .4% average gain between the 20 metropolitan areas. The eight-month price gains are the longest running the housing market has seen since 2009, just after the market crashed. Home prices have already made a 3.0 percent rise this year, exceeding economists expectations of 2.9 percent over the entire year.
Signs continue to point to recovery for the housing market and the economy. Progress has not been limited to home prices; it has been seen in many areas during 2012 including: a stabilized job market, a decrease in real estate inventory and record-low mortgage rates.
To read more on this story visit: http://www.nbcnews.com/business/economywatch/home-prices-rise-again-housing-recovery-continues-1C7276579
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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 Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Home construction is on the rise in the U.S., which is good news for economic growth and recovery. The Commerce Department reports home construction rates during September were the highest seen in four years. The steady growth is due to record low mortgage rates, reduced home prices and a shortage of homes for sale on the market. Single-family home construction increased 11 percent in September and apartment construction increased 25.1 percent. Overall new construction has increased more than 38 percent in the past 12 months.
A rise in home construction rates will help boost the economy, not only from a housing market standpoint, but it will also create more jobs in construction, home improvement and retail. Employment in the construction industry took a major hit after the recession, dropping from six million employed in June 2009 to 5.46 million in January 2011. Housing is one of the most important contributors to economic recovery and economists expect the housing market will continue to improve for the next several years.
To read more on this story visit: http://www.wrex.com/story/19841616/us-housing-construction-up-15-percent-in-september.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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 Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
According to Zillow.com, inventory of South Florida homes for sale on their real estate website has fallen by 34 percent in the past year. The drop in Palm Beach, Broward and Miami-Dade counties was well above the national average of 19 percent. Still, local Realtor boards have reported annual declines of near 50 percent or greater for individual counties in recent months.
First time homebuyers looking to capitalize on the falling home prices and record low interest rates are being pushed out of the market by savvy investors looking to buy basic homes to rent out to people who have recently been foreclosed upon. Zillow’s chief economist, Stan Humphries attributes this to investors’ ability to pay in cash, therefore being able to close sooner, which is more favorable to banks and homeowners looking to sell.
More homes could be coming on the market as Florida leads the nation in foreclosures, according to RealtyTrac. Realtors say there’s enough demand to easily handle another wave of distressed properties.
To read more on this story visit: http://www.sun-sentinel.com/business/realestate/house-keys-blog/sfl-zillow-falling-inventory-link-20121011,0,7427872.story
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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 Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
The long-struggling housing market is finally beginning to see a turnaround. Signs of recovery have been evident with the recent increases in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.
Barclays Capital put out a report recently forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015. The housing rebound can have a ripple effect that could help get the entire economy growing at a much stronger pace, which will add to more demand for housing.
Roger Altman, chairman of Evercore Partners and former deputy Treasury secretary stated that the recent turn in the housing market should become a boom by 2015 and lift the entire U.S. economy. He also expects housing will add 4 million jobs to the economy over the next five years, as the pent-up demand for home purchases drives building and home prices higher.
To read more on this story visit: http://money.cnn.com/2012/10/12/news/economy/housing-boom/index.html
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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 Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
