Sixteen million foreclosures in five years is frightening to say the least.
But it is a reality thousands of Americans must wake up to every day as they fight to keep a roof over their heads during this dire economy. Needless to say some families are forced out of their homes, leaving them no choice but to have to relocate to less expensive regions.
For this reason, moving experts are keeping a close eye on real estate trends in an effort to prosper from the housing market's inevitable comeback. While the industry slowly returns the bountiful bottom-line for moving companies is that business will soon begin to boom again all across America.
According to a 2012
Fiscal Times report, there is reasonable movement in the real estate industry. As trends turn in different directions, there is a resurgence as homes becoming the chattels they once were rather than the deficit they have become in America's skinny wallet.
Some of the following reasons are why realtors and residents are rejoicing as more and more for sale signs are being branded sold in big red letters.
Fewer Foreclosures and More First Time Buyers
- As former borrowers are beginning to save money again, their present prosperity is turning upside down loans right side up, enabling so many to avoid foreclosure. Meanwhile, as present homeowners are getting back on their feet, first-time proprietors are purchasing homes. Recent studies show that 39 percent of all recently sold property was purchased by first-time buyers.
Simpler Credit
- Sine qua non, consumers are judged by their credit score. If you have a good one, you are in. And if you have a bad one, well, need I say more? As higher scores get more goods and lower scores get little, it is clearly important to keep your credit score strong at all times. Consumers are rated trustworthy based on the Fair, Isaac and Company, FICO, score. The nationally used model, derived in 1989, keeps a consumer's credit files, offering a financial risk snapshot to potential lenders. With a credit score of at least 760, borrowers could purchase property with no problem in the past; however, that number is slated to fall in the near future. As more equitable buyers start reentering the market, FICO scores will drop causing lenders to vie against one another for the consumer loan.
Short Sales
- When the bank agrees to accept a sale for less than what the borrower owes to avoid facing a timely foreclosure, the sale is short. With so many short sales on the market, more affordable homes are becoming available, making it more possible for so many to purchase property. Inevitably, the more short sales and less foreclosures is becoming a win-win for both the bank and borrower.
Rising Rates
- The only way is up from here. That is the latest notion when it comes to mortgage rates, according to economists who foresee figures slowly rising in the future. The National Association of Realtors predicts an increase in the next year as U.S. News and World Report divulges Freddie Mac jumping rates to 4.5 percent.
All the noted good news can be proven by the West Coast's market with California receiving multiple offers on almost 60 percent of homes for sale in the state. According to the popular periodical, Realtor Marge Peck said property under $150,000 is selling strong in California, Phoenix and even Florida. Now that is good news for so many concerned, especially those in the real estate business who will directly benefit from the present real estate rise.