19 Interesting Real Estate Facts:
Fact 1: 11 % of all US homes are vacant.
Fact 2: Homeownership rate has dropped to 1998 levels.
Fact 3: Home prices are falling again..as we predicted last year…the housing double dip is here. Many economists expect further price (value) depreciation in 2011. Depending on the market and the price range….expect 5-10% additional value loss.
Fact 4: From the peak in 2006 US homes are expected to have lost close to 40% + in value nationwide.
Fact 5: In 2010 repoed homes reached the 1 million mark. A new unfortunate record.
Fact 6: 72% of the major US metro areas had an increase in foreclosures in 2010 over 2009.
Fact 7: 8 million Americans are at least one month behind. We know that when an owner is just ONE PAYMENT behind the probability of default skyrockets. Today’s one missed payment (30 day late) is tomorrows foreclosures (or short sale).
Fact 8: 5 million are at least 2 months behind. (See point 7.)
Fact 9: This year, 2011 an estimated 20,000,000 will be underwater, that’s 40% of all owners with a mortgage. The hardest hit areas of the country have simply stunning rates of negative equity: 67% in NV, 49% in AZ, 46% in Florida. 4 million US Homeowners are underwater by more than 50 percent.
Fact 10: New ghost towns are forming, Dayton Ohio 18.9% are vacant, Las Vegas whole towers of condos are simply empty.
Fact 11: THIS is officially the worst housing market in US History. Prices have already fallen MORE than even The Great Depression. 26% vs 25.9%
Fact 12: 4.2 million are unemployed for 1+ years. 9.6% are unemployed. Only 47% of working age Americans have a ft job
Fact 13: Lending requirements are getting rougher...
Fact 14: No equity..no downpayment. Last 2 years Americans have withdrawn 311 billion from savings and investment accounts. American’s are feeling broke.
Fact 15: Save Housing Fatigue has settled in over Washington D.C. President Obama didn’t mention housing once in the State of the Union. Compare that to just 2 years ago when DC was all aflutter with new housing initiatives. Is it time we talk about something that will truly make a difference..like a ‘Radical Refinance Program’ whereby owners negative equity is wiped out and they can keep their homes?
Fact 16: The American mindset about homeownership has shifted. After so many have been burned by homeownership its safe to assume that they will be very reluctant to dip their toes back into the water. Expect a continued increase in demand for rental units.
Fact 17: Social stigma of doing a strategic default is gone. People are now making the same business decisions that banks and other large investors do when underwater on investments.
Fact 18: The real estate industry is contracting. Fewer everything.. from loan officers to real estate coaches are needed. This trend won’t turn around until the baby boomers kids start having kids of their own. 7-10 years from now before we see a significant shift in housing demand due to the changing demographics.
Fact 19: Like in any consolidating industry there will be fewer operators doing more transactions. As more people leave the real estate industry the remaining agents, LOs etc will do MORE transactions.
Please contact us for a free consultation on your personal situation.