For the first time since the Great Depression, U.S. home prices are expected to fall this year. While at present, home prices are down about three percent from last year, the decline for the year could come in any where from two percent to four percent.
Here are some interesting facts on the U.S. housing market you should be aware of:
The median price of a single family home fell in July for the 12th month in a row, setting a new record, according to the National Association of Realtors.
The number of existing homes for sale is now at a 9.2 month supply. There is an inventory of close to one year of condos for sale in the marketplace.
The Mortgage Bankers Association reports that a record 0.65% of U.S. mortgages are in the foreclosure process.
The percentage of subprime borrowers late on their payments has now reached a record 14.8% (yes, that’s one in seven people).
A total of 179,599 notices of mortgage default were sent out to U.S. homeowners in July, according to Bloomberg.
Where do we go from here?
All kinds of records are being made in the U.S. housing bust. Real estate agents that were only recently flocking to the profession are now exiting stage left. New home builders are exiting state right… walking away from land they bought for development only two years ago.
I want to keep the negative news surrounding the housing market in the eyes of my readers as I ultimately believe it will be the housing bust that will send the American economy into a recession.