NEW YORK, NY -- According to www.ForeclosureWarehouse.com, reports in the media have focused largely on small improvements in the real estate market in order to restore confidence to prospective homebuyers. However, careful analysis of the data suggests the sluggish market and reduced home prices are not going anywhere any time soon.
According to Jacob Christensen, from www.ForeclosureWarehouse.com, foreclosure rates in several states between the end of April and the end of May 2009 increased. In Ohio and Arizona, the foreclosure rates increased by more than 3.5% while increases in Michigan were close to 2.5%. A few states have seen mild declines in the numbers of foreclosures being reported, but these have frequently been seen in the states that had the higher numbers of foreclosures, such as Florida (-1.99%) and California (-1.12%). The data continues to suggest the housing market is not yet in recovery.
These findings are contrary to the predicted outcome. Because the high number of foreclosures has glutted the market with unsold properties, the prices have decreased. In California, for example, the average home price decreased by nearly $200 just between April 30th and May 30th. Other states have seen similar decreases during that period: Michigan ($900), Ohio ($600), Florida ($300), and Georgia ($100). These prices have been steadily falling since the housing market began crashing two years ago. These reduced prices were expected to prompt an increase in home purchases.
The problem is mortgage rates have increased and have made home buying less desirable and less affordable for the average consumer. Mortgage rates for a 15 year loan increased from 4.82% in the middle of May 2009 to 5.25% just one month later. Thirty-year mortgage rates increased from 4.86% to 5.72% during the same period. Without a decrease in these rates or a significant reduction in foreclosures by state, the prices for homes should continue to decrease.
More information: http://www.foreclosurewarehouse.com/.
*(LOGO 72dpi: www.Send2Press.com/mediaboom/09-0324-FCwarehs_72dpi.jpg)
This release was issued on behalf of the above organization by Send2Press(R), a unit of Neotrope(R). http://www.send2press.com/
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| Notes:
Source: www.ForeclosureWarehouse.com
CONTACT: Jacob Christensen of www.ForeclosureWarehouse.com, +1-646-502-9455,
support@foreclosurewarehouse.com
Web Site: http://www.foreclosurewarehouse.com/
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If you have any questions regarding information in this press release, please contact the organization listed in the press release. Issuers of press releases and not TCI are solely responsible for the accuracy of the content.
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