Doing my 'Buyer's Broker" research this morning....
WASHINGTON – Nov. 20, 2009 – Twenty-nine percent of recent buyers purchased a home in foreclosure or through a short sale, according to the latest Realtors® Confidence Index.
Mortgages insured by the Federal Housing Administration are the primary lending vehicle for many buyers; 24 percent of recent buyers used an FHA loan to finance their purchase. However, more than one in five recent buyers – 21 percent – paid all cash.
The RCI is a key indicator of housing market strength based on a monthly survey of more than 50,000 Realtors; in a typical month there are more than 3,000 usable responses. Practitioners are asked about their expectations for home sales, prices and market conditions; they also share their insights regarding buyer preferences and financing options and how those factors are influencing real estate markets nationwide. COMPLETE ARTICLE AT: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=227405
Some other observations from my readings…
Our foreclosure crisis likely will persist well into next year as high unemployment pushes more people out of homes, pulls down housing prices and raises concerns about the broader economic recovery.
The latest evidence is a report that a rising proportion of fixed-rate home loans made to people with good credit are sinking into foreclosure. Driven by rising unemployment, prime fixed-rate loans to buyers with good credit accounted for nearly 33 percent of new foreclosures last quarter compared with 21 percent a year ago.
One in four mortgages in Florida were either past due or in foreclosure, the most in the U.S.
After three years of plunging prices, the housing market started to rebound this summer. That lifted hopes for the overall economy. But analysts say there are too many foreclosed homes that have yet to be dumped on the market and expect further price declines.
Another unknown is the effectiveness of the Obama administration plan to attack the foreclosure crisis. As of last month, about 20 percent of eligible borrowers, or more than 650,000 people, had signed up. But most of those enrolled have been chosen for trials lasting up to only five months.
Buyers from Around the World Unite! Buy a piece of America! And then we can get our appraisals back up as fast as they went down! (But no Green Cards!)
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