Hi Guys, As you know many of my blogs come from TimandJulieHarris.com I have been a student at Harris Real Estate University for several months now and I continue to sing their praises. Tim bosted this quick blog the other day and I thought it was worth re posting. A very compact paragraph with a very HUGE impact on our housing market and future.
Spring Housing Boom..or Housing Bust? | Zillow, Values Drop 2.6% Nationwide
Submitted by Tim Harris on February 9, 2011 -
Our friends at Zillow just came out with a new housing report:
1) 27% of all homeowners are upside down. Remember, that accounts for ALL owners. Looking at this from a different perspective, there are 50,000,000 owners with a mortgage. Based on current trends 40% (or 20,000,000) will be underwater soon.
2) Quarter over quarter home values have fallen 2.6%. That is a HUGE number.
3) Weekly mortgage applications dropped as rates increased. Watch new mortgage apps to get a very clear idea of what is coming next for housing. Many wanna be buyers contact a lender to become prequalified/ approved prior to looking for a home. Fewer apps = fewer buyers = fewer sales = price decreases...rinse, wash and repeat.