The real estate crash that never seems to end appears to be getting even worse. Home prices continue to go down, the number of underwater mortgages is soaring and the number of foreclosures set an all-time record in 2010. The peak of the housing market was in 2005 and the subprime mortgage crisis erupted in 2008. Shouldn’t things be getting better by now? How many years is this real estate crash going to go on for? Home builders and those that work in the construction industry are deeply suffering because new home sales continue to hover around record lows. Mortgage professionals are having a really hard time because very few people are seeking home loans and many of those that are seeking loans cannot get approved. Real estate agents all over the country are pulling their hair out in frustration and large numbers of them have left the industry completely. The United States has never had such a prolonged real estate slump in the post-World War 2 era. Unfortunately, there are a whole lot of indications that the real estate crash is going to get even worse. (Read More...)
Real Estate
Will 2011 Be A Nightmarish Year For The U.S. Housing Market?
As we come to the end of 2010, there seems to be very few reasons to be optimistic about the U.S. housing market as we enter 2011. Home prices have fallen for several months in a row, mortgage rates are going up, mortgage delinquencies are increasing again, the mortgage industry is mired in horrific legal problems and the underlying economy is still extremely sluggish. During 2009 and throughout the first half of 2010 the U.S. housing market experienced a time of stabilization and it looked like the housing industry might recover, but when the tax breaks expired things started to get bad once again. Now many analysts are publicly using the term “double-dip” when speaking about prospects for the U.S. housing market in 2011. (Read More...)
The ABC’s Of The Great American Housing Crisis
It doesn’t take a genius to realize that a horrific housing crisis in unfolding right in front of our eyes. Yesterday it was announced that existing home sales plummeted 27 percent in the month of July. Today it was announced that new homes sales dropped to the lowest level ever recorded in July. But why is this happening? Why is the American Dream still dying for millions of American families? Wasn’t the recession supposed to be over by now? Weren’t home prices supposed to be moving back up by this time? Well, in this article we will attempt to succinctly break down the ABC’s of the Great American Housing Crisis. Hopefully this will help people understand why all of this is happening. (Read More...)
15 Signs That The U.S. Housing Market Is Headed For Complete And Total Collapse
The U.S. housing market is dying. You will only hear hints of this on the mainstream news and from the politicians in Washington D.C., but as statistic after statistic continues to roll in, the reality of what is happening is becoming very difficult to deny. Up until the end of April, the giant tax credit that the U.S. government was bribing home buyers with helped stabilize the real estate market, but now that the tax credit has expired the decline of the U.S. housing market has resumed. Mortgage defaults continue to set new records. Foreclosures continue to set new records. Home repossessions by banks continue to set new records. The number of homes being constructed and the number of Americans applying for home loans is at stunningly low levels. For decades, owning a home has been touted as the very heart of “the American Dream”, but today that dream is out of reach for an increasing number of Americans. Why? It is because there are not nearly enough jobs for everyone. Without a jobs recovery, there simply is not going to be a housing recovery. Unfortunately, as the U.S. economy continues to come apart like a 20 dollar suit, even more Americans are going to lose their jobs and the U.S. housing industry will continue to experience a very painful decline. (Read More...)
Housing Collapse 2010?
Will we see the start of another housing collapse before the end of 2010? That is what a number of top economists are beginning to fear. The truth is that there are some very troubling signs in the housing numbers. The massive tax credit that the U.S. government was offering to home buyers helped prop up the housing market for quite a while, but now that the tax credit has expired, many real estate professionals are bracing for the worst. The reality is that foreclosures continue to set all-time records, the mortgage industry is a complete mess and another massive wave of adjustable rate mortgages is scheduled to reset in 2011 and 2012. As the U.S. economy continues to falter, and as the nation starts to deal with the economic fallout from the Gulf of Mexico oil spill, many are now wondering how in the world Americans are going to be able to afford to purchase millions of these homes which are still massively overpriced. The American Dream is still way too expensive for the vast majority of Americans. So are there signs that housing prices in the U.S. could be on the verge of another major decline? (Read More...)
50 Statistics About The U.S. Economy That Are Almost Too Crazy To Believe
Most Americans know that the U.S. economy is in bad shape, but what most Americans don’t know is how truly desperate the financial situation of the United States really is. The truth is that what we are experiencing is not simply a “downturn” or a “recession”. What we are witnessing is the beginning of the end for the greatest economic machine that the world has ever seen. Our greed and our debt are literally eating our economy alive. Total government, corporate and personal debt has now reached 360 percent of GDP, which is far higher than it ever reached during the Great Depression era. We have nearly totally dismantled our once colossal manufacturing base, we have shipped millions upon millions of middle class jobs overseas, we have lived far beyond our means for decades and we have created the biggest debt bubble in the history of the world. A great day of financial reckoning is fast approaching, and the vast majority of Americans are totally oblivious. (Read More...)
American Deadbeats
Is the current economic crisis creating a generation of American deadbeats? Once upon a time in America, we were taught that no matter how much financial trouble we get in we pay our debts – no matter what. But now that has fundamentally changed. Today, record numbers of Americans are filing for bankruptcy and a new term had to be invented (“strategic defaults”) to describe the large number of people who are making “business decisions” to walk away from underwater mortgages. Meanwhile, many of these same individuals who are walking away from their debts are spending big money on cruises, vacations and new cars – as if they were still entitled to all of the good things that come with living the American Dream. Below you will read some incredibly disgusting examples of this. It is as if a whole generation of Americans has decided that “financial responsibility” is a problem that they don’t care to be bothered with. But what is it going to do to the U.S. financial system if we can no longer count on people to honor their debts? (Read More...)
The Foreclosure Crisis
Those who believe that the U.S. real estate crash is over are delusional. The truth is that all the numbers point to the foreclosure crisis getting worse – not better. Many of the talking heads on the major news shows want to make the American people feel better about the real estate market and are projecting that things will soon turn around, but a cold, hard look at the statistics tells an entirely different story. Foreclosures are increasing and there is every indication that they will continue to increase. According to RealtyTrac, initial foreclosure filings were reported on 367,056 properties in March, an increase of almost 19 percent from the previous month. It was also the highest monthly total since RealtyTrac began issuing its report on initial foreclosure filings in January 2005. (Read More...)