On the foreclosure front this week, the pace of prime borrowers succumbing to foreclosure is accelerating with unemployment being the major driver. The good news, though, is that foreclosures in general leveled off in May, with numbers nearly flat from a year ago.
This fluctuation and changes in the market lately have accounted for a lot of uncertainty and indecisiveness among home buyers – as an example of this, just look at New Jersey. The hesitancy might be causing some sellers to slash prices on homes. One thing we can say about the tax credit is that it did help push many consumers into a decision. In times of uncertainty, there are always people who will take advantage, for better or worse.
As perhaps another window into the housing market post-tax credit, demand for mortgage applications dwindled last month to a fresh 13-year low. But look to the Golden state for a little pick me up. As I have said before, Southern California led the downturn in the housing market, so it may lead the pack during the upturn, and news this week shows the region finally hit bottom. Let’s hope this means housing is headed for an upswing! Still, according to some, the full recovery will not occur until 2013, with foreclosures stabilizing in 2011. Any predictions?
Finally, as summer heat hits in full swing, look at these tips on how to lower electricity costs. May be fun to mention to your clients too! Happy savings!