The worst housing slump in the U.S. since the Great Depression took its toll in 2008, leaving a record 19 million homes empty by year-end.
A recent report from the U.S. Census Bureau noted that the number of vacant homes in the nation climbed an astounding 6.7% in the fourth quarter, as compared to the same period the previous year.
But that's not all ...
- Empty homes for sale rose to 2.9%, the highest among the available data that dates back to 1956.
- The homeownership rate fell to 67.5%, the lowest since the first quarter in 2001.
- In 2008, there were 2.22 million new foreclosures, which averaged out to 6,090 a day.
- Homeowners lost $1.4 trillion in home value in just the fourth quarter alone.
And according to Zillow.com, in 2008, 1 in 6 homeowners had underwater mortgages (they owed more than their homes were worth).
Though some of these homeowners kept up with their mortgage payments during difficult times, others couldn't handle the idea that the property values in their neighborhoods lowered their own home's value, and thus decided to hand their keys back to the bank and walk.
President Obama is working on a plan to help homeowners through these challenging times. Though the details are still not clear, his administration is trying to find a way to create government guarantees for home loans modified by their servicers, as well as shield lenders from default after loosening loan terms. You can check back here for the latest housing and mortgage related news.
How are home values in your neighborhood? And if you are looking for a new home, how much are owners willing to negotiate?
