Housing and Real Estate

Housing prices are plunging across the country as inventory levels continue to grow and the real estate market continues to grind to a halt. Here’s a look at how to track the housing price declines month by month and by area.

1. It’s the most basic economic principle of them all, it all comes to supply versus demand. In the housing market of late there has been far too much in the way of supply and not nearly enough demand, causing some massive price decreases.

2. For years there was a real estate boom and it seems that many consumers felt that they couldn’t possibly go wrong investing in a home that might have been above their means, but that has all come back to reality of late.

3. The Case Shiller Index is a great way to track housing prices throughout the country. The Case Shiller Indices are based on a three month average of data. A quick look at recent Case Shiller data shows that the largest declines in home values is in California as well as parts of Florida. In some parts of California house prices are now worth almost 50% less than they were less than two years ago. California housing prices have definitely taken the biggest hit. (more…)

There are few people who think they will lose their home, they generally think they have more time. This is how it happens. Note: The time limit varies by state.

* First month of non-payment – your lender will contact you by letter or telephone. A housing counselor can help.

* Second month of non-payment – your lender will probably begin to call to discuss the reasons why you do not make your payments. It is important not avoid phone calls from your lender. Talk to your lender and explain your situation and steps taken to resolve it. So far, you can still make a payment to avoid being delayed by three months. A housing counselor can help.

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