Insight: Falling home prices drag new buyers under water

By Tim Reid

Thu Apr 26, 2012 1:12pm EDT

Summary: Use caution when purchasing a home in today's economy: many who bought homes within the last two years see their home losing value. Study the local marketplace before signing on the dotted line!

Key Quotes:

"More than 1 million Americans who have taken out mortgages in the past two years now owe more on their loans than their homes are worth, and Federal Housing Administration loans that require only a tiny down payment are partly to blame."

"It is a sobering indication the U.S. housing market remains deeply troubled, with home values still falling in many parts of the country, and raises the question of whether low-down payment loans backed by the FHA are putting another generation of buyers at risk."

"The overwhelming majority of the U.S. is still seeing home prices decline," said CoreLogic senior economist Sam Khater. "Many borrowers continue to be quickly wiped out."

"CoreLogic predicts the overall U.S. housing market will finally bottom out this year."

Read the full article at: Insight: Falling home prices drag new buyers under water
  
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga