Excerpt from the Article:
“NEW YORK (TheStreet) -- About 44% of homeowners with mortgages cannot afford to sell their homes, according to a recent blog post from real estate company Zillow.”
“Despite a recovery in prices, over a quarter of homeowners with mortgage loans still owe more than their homes are worth. "But another 18.2 percent of homeowners with mortgages, while not technically underwater, likely do not have enough equity to afford to move," according to the blog post.”
“43.6% of homeowners have less than 20% equity in their homes. That makes it hard for them to move or trade-up, given the considerable costs involved in buying and selling a home, including the cost of a down payment for the next mortgage.”
“This inability to sell is one of the big factors behind the acute shortage of existing homes for resale in the country. Strong investor demand for foreclosed homes is another reason.”
“Previously, foreclosures provided an overwhelming supply of homes that dragged down the market. Now investors are snapping up distressed properties at a rapid pace and converting them into rentals. The share of distressed sales -- foreclosures and short sales -- is now only 33% of all sales, compared to 44% recorded a year ago, according to a survey from Campbell/Inside Mortgage Finance.”
“The inventory of existing homes for sale represents 5.2 months of supply, up from 4.7 in March, but still below the 6-month mark that is considered a good balance.”
Note that you can’t control bankster\investor demand for foreclosures and once the herd is done with its feeding with the aid of Government, your home price will very likely languish with your local labor market. This too shall pass. Nothing has changed – underlying national economic weaknesses like concentration of wealth and the Administration’s anti-labor stance remain in place.
Housing is the preferred bait of the Predator State and to that end it is heavily manipulated by and for the benefit of the Washington\Wall Street Nexus. It is as if homeowner ship is a call by Obama to “Come! Feed on my peasants!” It is the same philosphy behind the moneyed interests pursuit overseas: destabilization then deconstruct and feed. Where the “feed” part is the "end game" that Geithner and the IMF aspire to.