How much worse can it get?
I mean really…how much worse can it get? Haven’t we suffered enough? Lesson learned? I’m reading on the internet once again about the housing ‘crisis’ and how it is affecting the global economy. We went from a housing ‘slowdown’ to a ‘downturn’ and then a ‘meltdown’, and now to a ‘crisis’ in a matter of a year. Sitting from my chair in
Home prices continue to plunge as home sales slow to record lows. With median prices for homes falling a record 13 percent in the month of November, and job market conditions deteriorating at a record pace, many are predicting the troubled housing market is going to get even worse before it gets better.
As reported by MSNBC, the sales of existing homes fell 8.6 percent, far more than the 1.6 percent drop expected, to an annual rate of 4.49 million in November, the slowest pace in more than 17 years. Additionally, median sales prices fell by 13.2 percent from a year ago, the largest drop in the 40 years records have been kept.
It’s a great time to buy a home, assuming you have the credit to take advantage of some of the rates being offered. Lenders are being cautious so it is going to take some pretty good looking credit scores to get some of those great rates being advertised.
Assuming you have the credit and the down payment…upwards of 20 percent or more, the inventory of unsold homes remains at a record high and continues to climb as lenders add more foreclosed product, so the choices are seemingly endless.
Mortgage rates are at their lowest levels in years. But even if you are looking to refinance that loan, you are still going to need that perfect credit score to get it done. Oh, and check for those prepayment penalties too, because you do not want to be stuck paying for the loan you just paid off.
Looking to renegotiate that adjustable loan? How about whispers from industry analysts saying that many who succeed in reworking that loan are going to lose their homes anyway. MSNBC reports that in some parts of the country as many as half of those homeowners who rework their loans eventually “redefault” on their loans.
But let’s look on the bright side too. The government is working to place trillions of dollars back into the financial systems. Add those dollars to the tax cuts and government spending proposed by the incoming administration. If we can figure out how to stop the hemorrhaging of foreclosures into the housing market, which could lead us to more normal levels of housing inventory, we may have potential to get ourselves out of this financial disaster, downturn, Armageddon, or whatever we are calling it today.