I was talking to one of the agents in my office and we were discussing the housing market were we having a recovery or a double dip in the housing market. She has been an investor in real estate for most of here adult life and wants to purchase more properties but cannot. That started me thinking which developed into the answer as to recovery or double dip. See what you think.
- It is difficult to impossible for non-salary employees or owner to get a home loan.
- People who have lost their homes by way of foreclosure, or short sale must wait 2 to 7 years before they can get a loan.
- The amount of the maximum FHA and VA loans has dropped more than $100,000.
- Qualifications and rules have gotten much stricter to get a loan.
- We have over 11 percent unemployment in my state and if we talk about the underemployed much higher.
- The homes where owners are not in danger of default have little or no equity.
If we look at the list the number of individuals that are able to purchase homes is severely hurt and the pool of possible buyers is way down. If we look at the people who may have the income to qualify they do not want to risk putting down a large amount or risk a further down turn.
Because the banks and the government have not found a way to include the maximum number of individuals that could afford to purchase homes at low risk I say we are in a double dip. In fact, I think another factor is just around the corner and that will be higher interest rates.
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