The Housing Recovery is Bogus ?

by reggielal on July 9, 2013

Is this a true housing recovery or just a myth ?  

The housing recovery is bogus according to MarketWatch.

Here is some facts to make us wonder about the Housing Market recovery; 

  • Delinquent mortgages declined 15% this year, they are still running at 6.08% of all outstanding mortgages (still way too high)
  • New home loans problems are still running at a rate of 0.73% (which is still high)
  • More than 7.3 million mortgage holders have loans that exceed the value of their homes — that’s more than 14% of all existing home loans (Upside down home owners)
  • Investors, who look to buy properties and rent out or resell them, make up about 20% of the overall market of Real Estate Buyers
  • Aprox. 66% of distressed properties are going to Real Estate Investors
  • Hedge Funds are still buying and getting all the breaks from Wall Street and the Gov.
  • Very few actual homeowners are actually seeing the benefits 

Yes – interest rates are still low and Real Estate prices are still low in many markets. 

Time will tell if we all get the benefit or just the Banks and the Investors – stay tuned …

(Source: MarketWatch)

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