Within the United States there has been a housing crisis developing and affecting millions of people everyday. More and more individuals are feeling the strain of the economy on their investments, mortgage and ability to buy a home or piece of property. The economic problems within the nation is severely affecting buyers.
The housing crisis has made is so that persons are needing even higher credit scores to qualify for home loans and affected even their ability to receive a good rate on their current loans. The housing crisis has also made it so that regulations have become less lenient . Banks are now being prohibited from lending to persons with bad credit amongst many other things. Many financial institutions are feeling the effects of the current housing crisis as many are failing as a result of loans gone bad and unpaid. Many banks are now less inclined to give out loans they feel will be risky for them in the future.
Each day there is much speculation surrounding when the real estate market will recover from the housing crisis. There is also much concern surrounding foreclosures and whether it would be the right time to buy and invest in land for sale. The truth is that the real estate market is constantly going up and down, moving from being a buyer’s market to a seller’s market. With a combination of a few factors this constant movement can create a very severe housing crisis.
Within the real estate industry mortgage has been negatively affected by the housing crisis. It has been estimated that by the end of the year 2012 there will be up to 8 million homes foreclosed. Also, approximately 19 million homeowners will owe more money than the price of their house in that same year. Additionally, by 2012, the inventory of land for sale will have doubled its current volume.
The housing crisis has also brought about further estimations. For instance, it is estimated to bring about a median home price of 20% or more and new home start up costs of up to 67%. These predictions are our future if the current housing crisis continues.