CoreLogic just released a report looking back on the national foreclosure crisis… United States Residential Foreclosure Crisis: 10 Years Later.
That crisis is still affecting both buyers and sellers today, who are much more informed and cautious. It peaked in 2010, and over 7.7 million families lost their homes throughout the period between 2008 and 2012… no wonder buyers are more cautious!!
One of the key factors brought up by CoreLogic's chief economist is the connection between jobs and homeownership. At the peak of the crisis, the national unemployment rate was 7%. In February 2017 the nationally adjusted unemployment rate was 4.7%… with an even lower rate of 4.0% in Minnesota. A healthy economy is driven by jobs… which usually drives consumer confidence that leads to homeownership.
Foreclosures have been dropping steadily since their peak in 2010. CoreLogic's report suggests the country will be back to 2005 levels by the end of 2017.
In Minnesota, February foreclosed sales only accounted for 7.5% of total sales… a good sign for traditional sellers and a healthy real estate market… and a frustration for those in the renovation business who no longer have a big supply of foreclosure properties to renovate.
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