As we struggle to pull out of the Great Recession, there’s no doubt that the crash of the housing market greatly contributed to our current economic status. Using the real estate market as a temperature gauge for our current status works well, and RealtyTrac has released the latest results on the housing market for January -and although they are initially encouraging, the future may still hold trouble ahead (I know, that’s just what you wanted to hear. Let’s hope they’re wrong.)
According to the data report from RealtyTrac, filings for foreclosure in January were reported on 315,716 properies – 10% less than December, but still 15% up from January ’09. The data includes mortgage default notices, house auctions and home repossessions by banks.
While this looks like good initial news, the original story in Reuters also reports: “While January’s decrease may indicate foreclosure prevention efforts are gaining traction, the data has been volatile in recent months and foreclosure appear poised to rise again.”
While unemployment rates have begun to slightly improved, the 9.7% of those who are still unemployed are preventing monthly mortgage payments. Furthermore, this encouraging 10% drop was also exhibited in 2009 – “January foreclosure numbers are exhibiting a pattern very similar to a year ago,” RealtyTrac’s chief executive officer James J. Saccacio wrote in a statement to Reuters. He also stated that if past behavior was any measure, a surge in the numbers over the next few months was to be expected.
Clearly, the best news in this market is that this is the perfect atmosphere for first-time home buyers. Obama will even send you a check for your purchase – and so will we.
Read the whole story at Reuters.