Foreclosure “Woes” Continue to Unfold!
Posted by: Carleton Sheets in Rescue, Recovery, Recession, Real Estate, Positive Thinking, Foreclosure, Economy, Economic, Confidence on Jun 09, 2009.
An article I just read in USA TODAY reported that the foreclosure rate will probably continue to move upward for a while. The culprit? And, no, it's not subprime mortgages this time ... it's the unemployment rate that's beginning to include borrowers who have good credit---and higher-end homes.
News like this undermines the cautious optimism some saw in the housing market recovery and suggests that the economy might travel a little more "down" than "up" in the near future. And it seems as if homeowners will continue to take the brunt of the mental, physical, and financial effects of the economy on a number of levels.
As I stated in one of my blogs in September 2008, much of the economic recovery hinges on confidence and jobs. And although it seems like we are slowly making progress in the "confidence" part, the "jobs" part of the equation is either not improving at all or is too slow to make a difference.
How will we be able to tell when we've hit "bottom"? An article in Kiplinger's July 2009 magazine links the economic recovery to hitting three out of six benchmarks---which include (1) jobless claims, (2) durable goods, (3) existing-home sales, (4) consumer confidence, (5) retail sales, and (6) interest-rate spread.
I am still confident that the housing market will make a full recovery ... but when I say "full recovery," I don't mean a return to the inflated prices of the boom years. I'm talking about home prices that are based on long-term average appreciations of 3 to 5% a year---not the unrealistic double-digit appreciation we've seen in the past.
What about your confidence level? Is it higher or lower? I'm looking forward to hearing from you.
Rachel Knight
Estate Planning