Context is everything.
Mar 9th, 2008 by Gillian
Foreclosures have been a topic of media attention for many, many months, but how widespread, how real, is this phenomenon? The media would have us believe that every residential neighborhood is full of distress sales with homeowners losing their most valuable asset. Of course, there has been a rise in foreclosure rates, and this trend may continue. However — and this is a big however — it is important to keep in mind that 99% of American homeowners are NOT in foreclosure situations. And even more essential is the fact that the crisis (if it is to be called that) is a regional problem, and not a systemic one at this point in time.
One good indicator of what is actually going on is to compare some year-over-year foreclosure statistics. Although the national foreclosure rate increased by an incredible 79% between December 2006 and December 2007, the overall context for that seemingly astronomical number is that the foreclosure rate was still only 1.033%. Additionally, since almost 30% of all homes are owned free and clear, this translates to 0.07% of all homes in the country being in foreclosure - not as newsworthy as many would think.
Fortunately here in Livingston and in Montana as a whole, we have not seen a large number of homes in foreclosure. Local lenders simply did not fall into the habit of “over-lending” and our fairly steady price appreciation has helped to keep homeowners out of “upside-down” equity situations. Our market here is stable, something I believe will continue for some time.
The market is getting busier. I have several new listings coming up this week, and I sold three properties just in the last week: 405 S. 12th Street listed last week for $229,00 and sold in forty eight hours, as did 526 S. 12th. With so many properties coming on the market, it’s good for you if I know of your needs ahead of time, so if you are shopping for a home, do let me know– that way I can give alert you when something new is coming up. As always, the best place to contact me is 556 6829.
Thanks, by the way, to everyong for your positive feedback & comments about my blog & website — do let me know if there are other features you’d like to see!
