Tuesday, March 22, 2011

The New Normal!

The New Normal: 5 Facts You Must Know
By Real Trends, Inc.

Fact 1: Homeownership rates has dropped to 1998 levels (around 66%) and there are apparently 750,000 excess vacant homes (around 2,025,000 total homes vacant.) Source 2010 Homeownership rates

Fact 2: Home prices are falling again; the housing double dip is here. Many economists expect further price (value) depreciation in 2011. Search your city at HousingPredictor.com to give your clients a third party view.

Fact 3: From the peak in 2006 US homes are expected to lose close to 36% + in value nationwide. bloomberg.com Compare this to the great depression when prices were down 25.9%; since June 2006 we are down 26% GreatDepression

Fact 4: In 2010 repossessed homes reached the 1 million mark. 1 out of every 45 mortgage holders received a foreclosure filing in 2010! Foreclosure Filings There were only about 5 million re-sales. If 20% of the market is Bank REOs and another chunk are short sales then every listing is competition. You can't exclude distressed properties from your comparables.

Fact 5: 72% of the major US metro areas had an increase in foreclosures in 2010 over 2009. Some areas are seeing increases already in 2011.

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