Some people have compared the current financial turbulence to the 1930’s and other ‘black days’. Some facts to know:
- More than 1000 banks closed in 1930 – only 14 U.S. banks have been taken over in 2008
- There are 76 million households in the U.S. that own their home – 24 million of these homes are free and clear
- There are 52 million homes with mortgages – 97.2% of these are not in foreclosure, 93.8% of these homes are current on their payments
On a sobering note:
- Over 20% of homeowners with a mortgage owe more than their home is worth
- 40% of all foreclosures are non-owner occupied
How did we get here?
Resale numbers – the above does not include new home sales.
Sources: Wall Street Journal / Moody’s Economy.com / RealtyTrac / NAR / Forbes
Do you see the problem and thus the predicament we’re in? Something had to happen one way or the other. Of course no one wanted it to be this bad. Let’s see what’s going to happen the coming time. In the mean time, Pat Kitano has a great way of keeping us informed –
In the mean time, it’s an excellent time to buy real estate!
Mirjam