US Facing Housing Crisis

It now seems that more Americans are unable to afford to pay their mortgage. As reported by WFLA/NBC Florida, the third quarter of this fiscal year has shown a record number of people who are falling further behind in their payments. This is a reversal from the first two quarters which saw an all-time low in payment delinquency. This new trend can be contributed to the climate of insecurity that the majority of U.S. citizens feel concerning their jobs. To make matters worse, the sales of existing homes in popular locations such as Florida are also taking major hits.

With the ever-increasing cost of living along with an unstable job market most Americans are finding themselves falling behind in their payments and their debt levels are also rising at an alarming rate. Of course we must assume the reaction from the banks and lending companies is going to be savage when people stop paying back their loans.  The cost of housing will stay around where it is now, after all, yet more people will be paid less today than they were just 6 years.  So we can expect a crunch sooner or later. 

Then there is the reality that, unlike the earlier half of this year when we saw a housing boom, nobody is buying. Even in popular locations like Tampa Florida, the sales of existing houses are down 43% and its even worse for condos which are down 46%. It has gotten so bad, many real estate agents have thrown themselves at the feet of the gods. Most housing experts are saying don't expect this trend to end any time soon.

Until next time.  

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