both buyers and homeowners are enjoying the benefits of a low distressed sales market since it encourages property prices to go up!
Chicago, IL (PRWEB) September 12, 2015
The Federal Savings Bank was intrigued to read that distressed home sales have reached their lowest level since September 2007.
As reported by Corelogic on September 11th, national “Distressed sales were 9.4 percent of total sales in June 2015, with REO Sales making up 6 percent of total sales.” This was a 2.4% decline from the level of distressed sales in June.
Regionally, “Florida had the largest share of distressed sales of any state at 21 percent in June 2015, followed by Michigan (20.7 percent), Maryland (20.5 percent), Connecticut (19.3 percent) and Illinois (19.1 percent). Nevada had a 6.8 percentage point drop in its distressed sales share from a year earlier, the largest decline of any state. California had the largest improvement of any state from its peak distressed sales share, falling 58.3 percentage points from its January 2009 peak of 67.4 percent. While some states stand out as having high distressed sales shares, only North Dakota and the District of Columbia are even close to their pre-crisis numbers (within one percentage point).”
Overall, both buyers and homeowners are enjoying the benefits of a low distressed sales market since it encourages property prices to go up! This is comforting for buyers since they can feel confident they are investing into a up trending market and homeowners will feel the reward of building home equity.
Corelogic stated that “There will always be some level of distress in the housing market, and by comparison, the pre-crisis share of distressed sales was traditionally about 2 percent. If the current year-over-year decrease in the distressed sales share continues, it would reach that “normal” 2-percent mark in mid-2018.”
As distressed home sales continue to decline and home prices rise, it seems inevitable that mortgage rates will rise. This is especially the case since housing demand is growing and the Federal Reserve may raise rates next week. The safest bet is for applicants to lock in a mortgage rate now rather than risk home prices or Fed policy effecting the affordability of a loan in the future.
Contact The Federal Savings Bank, a veteran owned bank, to learn more about mortgages.