More Problems With Homes
How strange. Just yesterday I wrote and said not to get too excited over home prices rising, and the next day a report comes out saying sales of new homes dropped drastically. Then the Commerce Department comes out with a report saying that new home sales dropped 3.6% in September, the first decrease since March, though overall it’s up 22% since January.
The reasons for this are speculated to be:
* the pending end to the $8,000 tax credit
* the increase of more homes in the West and South being foreclosed upon
* the fact that it’s taking longer for new home owners to be approved because of worries that some of them could turn into the same bad risks that have helped bring the real estate market crashing down (which, in my opinion, isn’t the fault of buyers, but sneaky lenders)
* the glut of foreclosed homes, which offers a lot of good deals versus building new homes
The last stat there is a big one, as the sale of pre-existing homes went up 9% in September. That actually makes sense in my mind, and the only reason I’m not surprised that figure isn’t higher is because unemployment is still on the rise.
At the same time, foreclosures are starting to slow down, which I still say has more to do with the fact that there are fewer homes left to be foreclosed upon in those areas that were the hardest hit, rather than believing the economy is getting better. California, Florida and Nevada are still leading the way in the number of foreclosed homes, with Las Vegas at the top of the list. But their numbers are starting to ease some, as the foreclosures in large cities is slowing down. Yet, up the street from Las Vegas, Reno shows an 80% increase in foreclosures, which doesn’t surprise me after spending a month there at the end of last year.
New on the list is Boise, ID and Provo, UT, which showed jumps in foreclosures of 141% and 120% respectively. Both areas are being hit hard by unemployment now, which is the major cause of all these foreclosures in the first place.
I implore the federal government to put another freeze on foreclosures like they did earlier in the year. Someone really needs to take a look at this, and force banks to work with some of these homeowners to keep their homes. This has to be stopped as quickly as possible.