Here we are towards the end of the year and more news comes to us stating more homes might be coming onto the market due to mortgages being upsidedown.
According to Fitch in the DSNEWS.com media there is an article worth viewing. Fitch reports 2/3 of borrowers are underwater. I want to say I believe Fitch is based out of California.
" A new monthly report from Fitch Ratings, Fitch RMBS Performance Metrics, estimated that approximately 60% of the remaining performing borrowers from 2006-2007 vintage securities owe more on their mortgages than the homes are worth. That negative home equity is preventing sustained improvement in US mortgage performance."Persistent unemployment problems continue to play into these statistics for people being able to remain in their homes. Fitch previously said in its " Global Economic Outlook" report that national unemployment will likely continue rising, peaking around 10.3% mid 2010.
Fitch continues to talk about the prices will continue to decline about 10% nationally in the next year. Gains this year according to Fitch were via modifications, liquidations, and moratoriums in some major markets.
"Even though modification efforts and an extension of th First Time Home Buyer tax credit may help, increased liquidations from growing distressed inventory will likely cause a further price decline."
Here in Maine where I am located we don't have the increased distressed properties such as other states, but this all continues to have an impact wherever you might hang your hat. I find it imperative for an agent to have an understanding of what is happening in the market in their home area along with general knowledge of outside their market. People continue to ask for " that great deal" They are far and few is my general thoughts. Most of our distressed properties have some damage from minor to major needs.