- Image via Wikipedia
After the housing market crash, foreclosures were on the rise with seemingly no end in sight. Many homeowners were either filing for Chapter 7 bankruptcy or attempting to modify their mortgages. CNN Money reported that home sales have vastly improved rising nearly six percent in the month of November. The majority of the homes that were sold in November were in foreclosure. Home prices also tend to be on the rise. In October, the average price of a new home was it’s lowest in seven years at approximately $194.000.00. Only a month later the average price was up to $213,000.00. Not a significant increase, but an increase non the less.
Although the numbers appear to be slowly improving and shall continue through 2011, economists say that not much has changed. Home sales have increased by a small percentage but they are still over twenty percent lower than they were in the previous year. Further, the inventory of homes has lowered but it still looks grim for home builders for the time being. A healthy inventory is around two million units and the number is currently at almost four million.
With the unemployment rate still at an all time high, although unemployment claims are down, banks are more cautious and unwilling to lend, surprisingly, people still want to own their own homes. Of course this is almost a perfect time to buy for those in the position to do so with low mortgage rates and affordable home prices. However, experts say they do not see a true recovery any time soon. With the affordability of home prices at the moment, experts are hopeful that people begin to take advantage of it and decide to become homeowners. While the housing market does appear to be improving but the process is very slow.
