With the U.S. economy and financial markets showing some signs of life, optimistic analysts are looking for a recovery in the all-important housing sector. They got some ammunition recently from the National Association of Realtors (NAR), which said that its Pending Home Sales Index jumped in April by the most in more than seven years.

But housing can't revive as long as the market is being flooded with homes that are falling into foreclosure. And far from going away, the problem is broadening.

It's not just about subprime anymore. Now, people with excellent credit who never dreamed of getting in financial trouble are being dragged down by a dangerous cycle of rising unemployment and falling home prices. That is likely going to prolong the foreclosure crisis and, inevitably, inhibit the recovery of the rest of the economy.

The biggest factor in this second wave of foreclosures is the inability of distressed homeowners to sell in order to pay off their debts. According to research by the NAR, there are enough $750,000-plus homes on the market to cover more than 40 months' worth of demand at the current rate of sales. That's four times the rate of oversupply in the housing market as a whole.

Many economists and researchers believe that even if foreclosures don't rise, the rate is already so high that it will put considerable pressure on the national housing market for at least two more years.

While forecasts differ in detail, the clear message is that foreclosure is going upscale. This means the housing bust won't end anytime soon, and is affecting people who never thought it would.

 

 

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at http://bestbuyersbroker.com or http://bestbuyerbroker.com.

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