For homeowners who currently owe more on their mortgages than their properties are worth, rising prices will rebuild equity.
Online PR News – 25-February-2010 – – "For most Americans, their home is their largest asset, so as values climb homeowners feel wealthier and more comfortable spending,"says Fred Filsoof, President of Coordinated Properties. There has been some recent positive news, notably a report this week showing that construction starts on new homes hit a six-month high in January. Over the past 12 months through January, housing starts were up 21 percent, a sign that underlying demand was beginning to firm again.
Only five of 20 cities in the index showed declines from November to December. Los Angeles and Phoenix posted the largest price increases. Prices dipped in key markets like Miami, New York and Chicago. Prices have risen for three straight months in Charlotte, North Carolina, which did not see a big price bubble during the housing boom. The busiest price range is for homes under $350,000. In high-foreclosure cities like Las Vegas, Phoenix and Miami, homes have lost roughly half their values from their peaks. But a report Friday from the Mortgage Bankers Association showed Nevada, Arizona and Florida had some of the biggest declines in new delinquencies.
Roughly 5 percent of homeowners with a mortgage are in foreclosure, the Mortgage Bankers Association reported last week. For the first time in almost three years, the number of homeowners falling behind on their loans is declining.The drop means the number of people losing their homes will start to fall. But, because millions of people are already in foreclosure, deeply discounted houses will put pressure on home prices for years. As those deeply discounted homes hit the market, they will keep pushing down prices. And, some economists fear that demand and prices will fall after two federal tax credits expire in April.
Banks are delaying the foreclosure process, traditionally between four and six months, as they evaluate borrowers for help under the Obama administration's $75 billion mortgage-relief effort. It lowers borrowers payments to as low as 2 percent for five years and extends loan terms to as long as 40 years. Despite the government's efforts, there may be 6 million foreclosed homes that are put on the market over the next three years.
About Coordinated Properties
Coordinated Properties,Inc. is a full service real estate company based in Atlanta, GA. The company has grown outside of Altanta and has multiple properties in Georgia, New York City, Biloxi,MS, and Stewart, FL. The company's office is located at
1100 Garmon Dr. NW Atlanta, GA 30327