By Sam Burns
In 2009, Minnesota foreclosures were above what was considered normal. However, there were some slight changes toward recovery within the year. The market however continues in a downturn for the worse. Average prices of homes went in the direction of negativity, since home sold averaged about 15 % less than the year before.
Although, there was an increase by 17% in home sales last year, much of it had to do with the first time buyer program that currently is in place. This contributed to the large amount of sales that were seen from the time of 2005. The other side of the story relates to the high number of foreclosures and short sales from those selling their homes for less than what it was worth.
Many American homeowners currently owe more on the home they own than what the house is actually worth. When people are in this type of situation they are less likely to try and move to a home that is bigger, since they do not want to pay the difference they would have the responsibility of. Among the 21% of American’s within this situation, federal programs have offered to put those individuals into larger homes through subsidies. This has to do with wanting to encourage the amount of sales which take place. In April, this program extended to these types of homeowners as well as those who are first time buyers will end.
Nothing is going to work for the market until there is a change with more than the real estate market. The amount of jobs that people have needs to increase in order to help those with homes to stay where they are. Just last year there were 23,019 Minnesota foreclosures. This happened to be 12% less than the year before, however things remain unsteady, due to the above average numbers of foreclosures. Many of the foreclosure were residential which is three times of what is average. This number continued to grow from the time of 2005.
No matter what, people need jobs that are steady. Additionally, people need jobs with wages that go along with the economies stability. As this starts to happen things should start to become more stable for all.
Job loss related to the largest problem with people losing their homes. This has made the biggest impact on those buying homes or moving from their current home. In essence, people are scared and do not want to changed things more than they have to due to the way they see risks ahead.
In 2009, some may think the decrease in foreclosures related to something good, but numbers indicate otherwise. Mostly all of those who were able to keep their homes, did so through the government programs that came into play. This allowed some who have homes with a price tag amounting to thirty percent of their income to keep their home, but still leaving them within a red zone.
At this time, the Minnesota job market will decrease in 2010, however this expectation only amounts to one percent. Risks of foreclosures will continue to remain high, however this change does not amount to one that will make enough of an impact on the Minnesota foreclosures.
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Topics: Real Estate | Comments Off
Tags: Finance, foreclosure, Investing, Legal, lending, Loans, make money, Minnesota economy, Minnesota finance, Minnesota foreclosure, Minnesota property, Minnesota real property, Real Estate, real property
MLA Style Citation:
Burns, Sam "Discover Everything They Don’t Want You To Know About Minnesota Foreclosures." Discover Everything They Don’t Want You To Know About Minnesota Foreclosures. 21 Jun. 2010. uberarticles.com. 6 Jul 2015 <http://uberarticles.com/real-estate/discover-everything-they-dont-want-you-to-know-about-minnesota-foreclosures/>.
APA Style Citation:
Burns, S (2010, June 21). Discover Everything They Don’t Want You To Know About Minnesota Foreclosures. Retrieved July 6, 2015, from http://uberarticles.com/real-estate/discover-everything-they-dont-want-you-to-know-about-minnesota-foreclosures/
Chicago Style Citation:
Burns, Sam "Discover Everything They Don’t Want You To Know About Minnesota Foreclosures" uberarticles.com. http://uberarticles.com/real-estate/discover-everything-they-dont-want-you-to-know-about-minnesota-foreclosures/
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