Categorized | Residential

More Than a Quarter of U.S. Homeowners Owe More Than Their House is Worth

Please Share!

The news about the current state of the United States housing market continues to get worse in many areas of the country. Most recent reports indicate that more twenty five percent of homeowners in the United States are faced with underwater mortgages, meaning that they owe more than their house is actually worth. That is largely due in part to the fact that home values have fallen more than thirty percent in the last four years.

The current situation may once again cause a number of foreclosures on homes, which may lead to more troubles for the embattled real estate market. There is excess in the supply of homes with little demand due to various economic factors. Some cities and states are in far worse shape than others. Most areas that overbuilt during the prime years are hurting significantly. These states are mostly those that in are in warm weather climates, such as Georgia, Arizona, and Florida.

There have been some areas that have seen their housing markets finally level off, though it is highly unlikely that they will reach the levels of pricing and sales that once existed just a mere four years ago. Although it would seem as if the current market provides potential homeowners with an excellent opportunity to buy a home, many of these candidates are instead opting to rent due to fears of unemployment and volatility in the stock market.

With homeownership looking less attractive for many, those that have rental properties are seeing their investment grow more and more lucrative. Ironically, with the demand of rentals increasing, rent prices have risen to the point that they are actually more expensive than the costs of buying a home in the current market.

Please Share!

About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

Leave a Reply

Twitter Chat