The Real Estate Market News in Us Prices Will Fall
Donald’s plan to rescue the U.S. mortgage market considered a failure. According to a joint report by the Office of Exchange Control and the Office for Supervision of savings, the Finance Ministry, more than half of U.S. borrowers, refinancing a mortgage in last year, nine months later defaulted.
It is expected that approximately 4.5 million objects can be alienated. According to Director of Department of investments in foreign real estate companies, Inter mark Savills Igor Indri sons; it could lead to a fall in housing prices in the U.S. by 15% in the so-called “points of subprime».
Repeated defaults on the refinanced in the first quarter, loans by the end of the year amounted to 51, 5%. The number of overdue for a minimum of 30 days of payments rose to 57, 9%. The number of households with overdue payments on a mortgage for more than 60 days rose to 2.39 million in the fourth quarter, i.e. by 13, 1% compared with the previous three months, and to 49.6% from a year earlier.
American borrowers are struggling to pay the mortgage while falling home prices compel them to pay more than the cost of their property. About 24% of real estate, bought on a mortgage, “went under the water” in the fourth quarter (i.e., mortgage debt exceeds the market value of housing). The average home price in February was $ 165,100 – 28% less than the peak for the market in July. And in August, about 4.5 million objects and can be completely alienated.
On the number of alienation influenced by two factors: the level of unemployment and falling real estate prices Projections suggest that over the next four years in the U.S. will be expropriated for the debts of 8.1 million homes (16% of the total number of acquired mortgage facilities). If the unemployment rate will reach 8%, the number of excluded homes will increase to 9 million if the unemployment rate exceeds 8%, it will be alienated by more than 10 million homes.
The unemployment rate in February of this year amounted to 9, 7%. As for lower prices, there is no need to analyze statistics for the whole country (for example, in 2009 prices decreased by 3, 87% according to the index Case-Sheller), and statistics by state, taking into account such factors as the issuance of their subprime-lending.
Indeed, there are areas where prices grew slightly (e.g., Boston, Washington, Philadelphia). But still remain problematic Miami (-24.3%), Detroit (-22.5%), Chicago (-21.6%), Sacramento (-18.9%), Las Vegas (-29.7 %), San Francisco (-17.55%).
Investors from Russia today is actively encouraging it to buy property in the points subprime, but we caution that before any purchase was necessary to conduct an independent analysis, and not blindly trust information about ended with the fall in prices in the U.S. Today in this country the housing market is still far from the concept of “recovery”.
A quantitative measure of redemption of mortgages on the U.S. real estate market drops the second consecutive month. It shows the lowest annual growth over the past four years, even against the background of government support the property market.
Indicator repurchase mortgages, which includes the refusal to pay the mortgage, auctions houses, as well as the purchase of homes by banks, amounted to 308,524 units in February, real estate, which is 2% less than in January, but 6% more than similar (February) the previous year. It is the smallest annual increase in this indicator, recorded in January in the United States for 17 consecutive months, there is the budget deficit.
In February, according to the Treasury, the U.S. recorded a budget deficit of $ 220.91 billion analysts predicted it in advance, and the forecast was justified. In February last year, the figure was $ 193.86 billion in February expenditure budget increased to $ 328.43 billion is the highest figure ever. Last year it totaled $ 281.17 billion
While the Administration attempts to Obama to save the mortgage market cannot be called successful. According to the program Home Affordable Modification Program (HAMP), the end of the year was supposed to refinance mortgages for 3-4 million borrowers.
But because of the complexity of the procedure within the HAMP at the end of February, it was restructured all 168,708 of overdue loans (from 1 million borrowers seeking assistance). On the balance of the nine national banks and three savings associations are now 34 million sites, totaling $ 6 trillion. That is approximately 64% of the total number of all mortgages in the U.S.