I read an article recently from Reuters News Agency. It seems that the homeowners in the United States are doing a much better job of paying their mortgages. Late payment rates are at the lowest level they have been in five years. The percentage of home owners that were at least two months behind in their payments fell by 1 1.4% for the last quarter of 2013 according to credit union reporting. The last time the figure was this low (3.85%) was way back in the second quarter of 2008 (3.61%)
One of the key issues that aid the homeowners is that home values are rising, the job market is getting a little better and there are still efforts to restructure home loans. This all helps them to make their payments on time.
A really big part of the encouraging numbers is that many of the “Risky” home loans made before the 2008 crash are no longer a factor, since the homes have already been sold or foreclosed upon. So, this downward slope of the mortgage delinquency curve is an encouraging trend.
While all of this is going on, we are observing a steady rebounding over the past two years in the U.S. home sales and prices arena. Couple this with low mortgage interest rates and a fairly tight supply of homes for sale and we have a housing rebound.
While there are still some who are “under water”, the water is not quite as deep as it was a year ago. As this trend continues, the sentiment in the housing market will continue to improve.
But the mortgage delinquency rate is still about twice as high as it was before the housing bubble burst in 2007. This suggests that many homeowners still are struggling. It also may reflect that many home loans made during the housing boom remain unpaid and have yet reach the foreclosure process.
It appears that the bottom line here is that the housing market is slowly turning around. Oh yes, the harsh winter slowed things down. In spite of the unemployment level, there seems to be a shortage in the labor supply for building new homes. And, because of the weather, there seems to be issues with the flow of materials.
But, in spite of these negatives, there are areas of the U.S. where housing is at a premium and perpetuates a seller’s market. In Houston, open houses bring in 40 to 60 viewers and multiple offers before 5pm. In Pittsburg, there never was a housing bust. Vegas is slowly coming around and showing positive growth. In Michigan, while the pricing has shown a propensity to recover, there is still a shortage of inventory in some of the markets.
I hope this article was of some help for you.
If you have any questions or know of anyone wishing to sell or buy their home or business, simply have them call me at 231-250-2101.