At the end of October there were 6.3 million homeowners currently behind on their mortgage in the US. A big number, right? However the data shows that this number has been on a steady decline for the last two years.
In just January of this year that number was closer to 6.9 million. The January before (2010) the number was 8.1 million!
We’ve talked about this before (here are a few links: 3.18.11, 7.29.11, 9.6.11) but I like to share the real data whenever I can. All we hear in the media is doom and gloom, how there are so many foreclosures and no one can pay their mortgage, etc. As a reminder, the most accurate way to predict foreclosures in the future is people missing payments today. Likewise as less and less people are missing mortgage payments (to the tune of 2 MILLION less in the last two years) the future foreclosure number is going to go down.
We’re seeing the benefits of this already in the Sacramento/Placer markets as housing inventory is at about a 2 month supply. A more “normal” or healthy market has about a 4 month supply of homes at any given time. I’m also seeing the home values of many of my clients, from midtown Sacramento to Roseville, see the values of homes they bought in the last year or so RISE (not a huge rise, but that is better than declining or even being just flat).
This doesn’t mean a reversal of fortune, that people who bought in 2006 are going to see the value of their homes rise to the level it was back then any time soon, but it’s a start.
Bringing you the good news, with real numbers, that you don’t get anywhere else! 🙂