Guest Article by Mary Aldoseri
As the month draws to an end let’s have a look at the current real estate market in the news…
A Helping Hand for Struggling Borrowers
The states of Arizona, Florida, and Michigan are planning to use federal funds to bring down loan balances for struggling borrowers and to subsidize mortgage payments for those who remain unemployed. The proposals are a ripple effect from foreclosure-prevention efforts championed by the White House, which allocated $1.5 billion for Arizona, California, Florida, Michigan, and Nevada. The Treasury Department is the reviewing the plans, which will be finalized as soon as next month!
The Financial Crisis is Over… It’s Time to Raise Interest Rates
According to the National Association of Realtors, Ken Rosen, chair of the University of California Fisher Center for Real Estate, has confirmed that the financial crisis is over and that short-term rates should be 2 to 3 percent. He predicted that by keeping rates very low, we will see asset bubbles in the stock market, bond markets, and global real estate. Rosen then mentioned that demand for housing will escalate as companies hire more employees. Rosen also predicted that new home construction will remain way below the historical norm of 1.1 million homes a year for at least a couple of years and that foreclosures will set records in 2010.
Mortgage Fraud Persists…
CNNMoney.com has stated that Mortgage fraud continues to rise,
1. Mortgage Fraud rose to 7 percent in 2009
2. Mortgage Fraud rose 26 percent in 2008,
(Figures by Mortgage Asset Research Institute)
Florida is one of the 10 states where mortgage scams are most common:
• Florida
• New York
• California
• Arizona
• Michigan
• Maryland
• New Jersey
• Georgia
• Illinois
• Virginia
Mary Aldoseri writes extensively online on various Florida topics her website helps those from overseas and interstate to buy property in Florida.
{ 6 comments… read them below or add one }
Mary, thank you for the insightful post on the current real estate market. It is hard to say what the tax credit expiration will do on the short-term, but long-term I think it will stabilize prices. What reasons/causes do you think are in play for mortgage scam being so prevalent in FL?
It still amazes me how many people get suckered into this stuff. Please do your homework before you sign on the dotted lines folks!
It doesn’t seem like there has been effective foreclosure prevention regulation in California. The most that can be said is that the banks would rather process short sales than foreclose on properties, but that isn’t stopping them from foreclosing. My understanding is that the banks were able to buy bundles of mortgages which are performing above their acquisition cost, so they are indifferent about foreclosures or short sales and are in no rush to refinance the loans.
I think this is really an interesting thing because I have seen so many people are associated with that and every new associated with real estate is like a diamond in the ring. I think this is one of the best thing to discuss. Anyways keep it up and keep continue with your valuable thoughts.
I like Ken Rosen’s predictions on the real estate market. I think it’s going to get better too and a lot of people are going to own houses that don’t have inflated values because of this crisis. So even though it seems hard for everyone now, it will pay off for those who buy while the prices are low.
” ….new home construction will remain way below the historical norm….”
You can sure say that again! In the Minneapolis area, our market is so saturated with unsold new construction, that I bet it will take years to clear it out.
Lennar practically has open house “festivals” where you can almost name your price. Just a few years ago, they wouldn’t budge a nickel.