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It may take years to recover home values. A person who purchased a three bedroom house at $200,000 in Maricopa, Arizona in October 2005 is valued today at $80,000. But due to heavy recession he is not able to make his mortgage payments now. His house will be foreclosed next year. This is just a simple example; many home values have dropped drastically this year. It may take years for real estate market to recover.
There was a time when home value prices were soaring in most parts of the country especially in Arizona, California, Florida and Nevada - during a brief period of easy lending - especially from 2002 to 2006. Till now, home values have fallen nationally on an average of 19 percent from their peak. Prices would fall at least 17 percent more to reach their traditional relationship to household income, according to a survey. Since the price of home values has fallen drastically, has lead to worst financial crisis since Great Depression. Some fear that that due to foreclosures and tight credit crunch there may be more fall in price of home values which may affect millions of families and many banks may go into insolvency. If there is another 20 percent decline in prices, you will see bailout in Banks.
Although Rim country real estate is suffering, recent data shows that there is an increase in the number of home foreclosures in the valley every month. Central Arizona Board of Realtors (CABR) has to keep track of the foreclosure number in the area which it has never done before. President of CABR, Annette Bashaw said, there are around 2.5 percent of land and homes for sale in central Arizona. Compared to valley's 20.5 percent of bank owned properties, central Arizona is doing well, though home prices have dropped nearly 10 percent. According to a survey, there are nearly 56,000 homes for sale in the valley, of which 11,400 are in foreclosure and another 16 percent are in short sale. The number of foreclosures may not go above 3 percent in the Rim country, but foreclosure numbers may rise gradually for another year and then level off.
Property foreclosures in Riverside County continued to decline last month. There have been a total of 6,833 mortgage default notices, auction sale notices and bank repossessions in riverside country in November. Riverside County has moved to sixth position in the foreclosure activity this month. San Bernardino County is having the fifth highest foreclosure activity in the state. California is placed under 4th position in foreclosure activity. It had nearly 60,491 filings last month - a 51 percent increase from a year ago. The top foreclosure volume leader is Nevada followed by Florida and Arizona. Saccacio pointed to a 7 percent jump in pre-foreclosure delinquencies in the third quarter. Half of the homeowners granted reduced mortgage payment terms in the first half of the year had slipped back into delinquency. Nearly 1 in 107 households in Riverside county slipped into some stage of foreclosure last month, compared to 1 in 160 in November 2007, according to a survey.
There will be reassessment of every piece of property in Lawrence country in January. This country has the lowest property tax rate. Country auditor has announced a new education campaign to alert homeowners about revaluation. With the help of this new campaign, homeowners will know the correct value of their property. In some areas like California, Arizona, and Florida property values have decreased due to economic problems, but property values locally have not been impacted. Due to economic problems there is staleness in the market. There has not been a lot of activity in the market. Sellers are hoping prices stay constant while buyers think prices are coming down. Property prices are falling in certain parts of Arizona, so it would be a great time to buy a house.
Assessment values in country are lower than the rate the properties are selling for. Based on a sample of 173 homes for a total of $15.9 million, those properties were assessed at $13.3 million, meaning the parcels were assessed at only 83 percent of their value. The property values are to be no less than 90 percent of sale values and no more than 110 percent of sale values. The country auditor's association of Ohio has developed a new program called your home, your value. All your questions can be answered if you visit their site.
According to RealtyTrac, Riverside country has received a total of 6,897 mortgage default notices, auction sale notices and bank repossessions in October, which is 15 per cent less than in September, but 13 percent more than a year ago. The state has fourth highest foreclosed properties. The three California countries with highest foreclosure activities are San Joaquin, Yuba and Merced. According to RealtyTrac, California's overall foreclosure activity has come down with 56,954 filings recorded in October-18 percent less than in September and 13 percent more than the year before. California has slipped to No.4 from third position in national foreclosure activity, the first three being Nevada, Arizona and Florida. To prevent foreclosure it has become mandatory that before a lender can proceed with filing a notice of default against a property, he must first try to contact the borrower and determine whether loan modification or other arrangements are possible to prevent foreclosure. If a borrower fails to respond to lender's letter, the lender can proceed with the foreclosure process after 30 days have elapsed from the time of the last attempt to make contact with the borrower, according to the law. One in 102 households in Riverside country slipped into foreclosure last month, compared to roughly 1in 114 in October 2007. In Prince William country, last month nearly 1,116 homes were sold in the country, a 235 percent increase from the same period last year. Many real estate investors are telling that Prince William country is a fire place. There has been an increase in home buying in the country rapidly over the summer but it has increased more rapidly last month. More detached single family homes were sold in Prince William (579) than in Fairfax country (541) which has three times as many houses. Sales of detached single family houses in Fairfax country were up 71 percent last month from September 2007 and the median price was down 24 percent. In Loudoun country, sales were up 47 percent and the median sale price declined 17 percent. The housing markets in Arlington country and Alexandria were generally more stable. Instead of pouring your money into Wall Street try to put it in a vacation home. It is remarkably good investment right now. Buy a vacation home in areas like Cape Coral, Daytona, Destin, Fort Lauderdale, Indian rocks Beach, Kissimmee, Madeira beach, Orlando, Panama City beach, Sanibel Island, West Palm Beach, or Windsor hills. Home prices are down right now across the board. That means you can pick up a beach condo or a mountain cabin at a decent price. Due to lower interest rates its time to buy. In certain areas like Arizona and Florida, the pending home sale index has jumped to 18.4 percent in August. It's now 37.8 percent above what it was a year ago. Home prices are going to increase 2 to 3 percent by next year. Vacation home rental market is strong in a weak economy because it's easy for consumers to find information on vacation homes. Vacation homes are less expensive when compared to hotel rooms. The weak dollar makes U.S. tourist destinations attractive to European travelers, whose currency is still strong. When airfare gets expensive, people start taking road trips. Even in a bad economy people need to take vacations. An inexpensive stay in a nearby vacation home is the perfect choice. |
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