Kansas City home buyers will see distressed properties like foreclosures and short sale still dominating the Kansas City housing markets for the next year

The national homeownership levels have dropped to late 1998 early 1999 levels. With the new 2012 Qualified Residential Mortgage guidelines coming soon, there many reasons to assume that the national home ownership rate will still continue to decline. The national homeownership rate is down to 66.4%, down from 67.1% from the year prior. 


Here are some national real estate facts:

* 25.5% of Americans had credit scores below 599, making them unlikely to be able to attain credit for a mortgage.

* QRM guidelines mandate higher down payments. Jumbo mortgages continue to require at least 30% down. So-called qualifying mortgages are expected to require at least 10% down.

* More than 25% of homeowners that have mortgages are underwater (owe more on their mortgage than their home is worth). Put another way, 40% of all Americans with a mortgage are now underwater.

* According to the S&P/Case-Shiller Home Price Index, prices are now down more than 30%….and falling.

* Home values are tracking to surpass the 2009 lows soon. In other words, the brief uptick in home sales that came as a result of last years home buyer tax credit is a distant memory and we are again trending down.

* Add to this the nearly 10% national unemployment rate , tightening lending standards, and seemingly never ending depreciation cycle of home values.  Experts agree that we will be in this corrective cycle for at least another 3-5 years. Followed by no or very low ‘appreciation’ (really, inflation).

The simple facts is, after nearly 5 years we are at best in the middle of this corrective cycle. Kansas City home buyers will see distressed properties like foreclosures and short sale still dominating the Kansas City housing markets for the next year.

RE/MAX sells more homes than any other real estate company.
For a reason...should we talk?

Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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