A glimmer of hope tonight in the American Housing Crisis
PETOSKEY, MI -- We’ve got encouraging news tonight regarding the American housing crisis.
Last month, repossessed homes hit the lowest mark since March of 2008, that's according to RealityTrak, Inc.
And right now, the mortgage rate is the lowest it has ever been.
Realtors and lenders say this could be a positive sign.
"I think we've seen somewhat of a floor beneath us, but it can be very pockety,” says Northwestern Bank Petoskey Branch Vice-President Tracey Grose.
The housing market isn't going to bounce back overnight from the rock-bottom it hit in 2009, but those who lend and sell homes are seeing positive signs. Wally Kidd, partner in Kidd & Leavy Real Estate Company, says compare this year to last, foreclosure rates are down 32-percent, moving Michigan from the top foreclosure state in the country.
“We used to be number one, we were the first, so if you can find any silver lining in the fact that we're 6 now, hopefully in a year, we'll be 12 or 15, and then 20," says Kidd.
Kidd says lower home prices also have more people buying and mortgage rates are at a record low of 3.94 percent.
"They’re looking at it and saying, man, rates are probably never going to be this low again, and prices are probably never going to be this low again," says Grose.
With the decreased mortgage rate, that's going to allow people to refinance, giving those in threat of losing their homes a second chance.
"Phenomenal. I just refinanced my house converting it to a 15-year, to a mortgage payment less than I was paying on a 30 year," explains Kidd.
“I think it slowed down what could have potentially been a larger foreclosure issue by trying to keep people in their homes," says Grose.
But the housing market is still a long way from being health and on solid ground.
“I don't know what way is going to lead us out of it, other than the economy. Clearly, the housing market should rebound once we see jobs being genuinely produced in this country," says Kidd.
And for those trying to sell a home in the market, the going will continue to be tough.
Now as you might imagine, it's tougher to get into a home in 2012 compared to before the real estate bubble popped.
Lenders are looking at finances and credit history closer.
They say this should prevent history from repeating itself.
