Many people have equated the current housing and mortgage crisis with the economic downturn and recession. If so, then this bit of news should cheer some of you up!A recent article explains how some areas of the housing market are beginning to recover due to the decrease in house price decline (down from 15%). Because many home owners now find themselves 'in the hole' or 'underwater' with their mortgage (meaning they owe more on their house than it is currently worth), any increase in housing prices should be a signal indicating recovery is on its way.
There seems to be a bit of a turnaround with supply and demand. Although many homes are still sitting on the market, many home owners have opted to 'wait it out' and try and sell their home sometime next year when the market is more stable. Several are choosing to rent or lease their home until they are ready to put it back on the market. However, this puts a decrease on the amount of homes available for sale, which temporarily brings the prices up a tad. It is still too early to tell for sure whether this will have a lasting positive effect on housing prices, though, and it is entirely possible for prices to continue to fall given the recession.
How has the housing crisis affected the average home-owner? Many are unable to finance their child's college or university education. Taking out a home equity loan was once a quite popular way to finance education, and those who are underwater with negative equity are now unable to do this. Some are stuck with mortgages they cannot afford to pay, and others are holding onto property they no longer want, delaying retirement dreams and relocation.
Thus, any sign of rising housing prices, however minimal, are taken quite seriously. Although there still remains quite a bit of time before full recovery is restored, there does seem to be some hope that the worst is finally behind us. We can only predict, however slightly, that prices will continue to rise, albeit quite slowly.
How has the housing crisis affected your life? Have you had to delay relocation or retirement plans? Are you unable to finance your child's education as planned? How has it impacted your ability to sell your house? Has negative equity resulted in debt for your family?
Share your thoughts here with other readers of Wallet Wise, and know that recovery is certainly on its way!
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1 comment:
I enjoyed this article. However, I am on the opposite side of the fence. I'm hoping to purchase a house in the next year and need the market to remain affordable. I'm sure there are areas that will improve based on the local economy, but I think here in Southern CA our prices will remain stagnant for a little while. At least, this is what I'm hoping for. I don't want to wish any ill-will on people wanting to sell their homes, but this is the first time in years the housing market is at a level I can afford.
Thanks for your post-
Little House
www.littlehouseinthevalley.com
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