This year, foreclosure filings hit a record low since the end of 2007, before the housing crisis really took off. This sounds like great news, but don’t be fooled. Banks are overloaded with repossessed homes, causing processing delays and skewed foreclosure numbers. Basically, banks are repossessing less homes not because the housing crisis is subsiding, but because they don’t have the time and resources to repossess fast enough.
The Housing Market: Past, Present and Future
Over the past two years, most people seem to believe the housing crisis has not improved in the slightest. In fact, 36% of respondents said the housing crisis has gotten much worse in the last two years, while 24.8% said it has gotten slightly worse, 22.8% said it has not changed, 14.4% said it has gotten slightly better, and only 2% said it has gotten much better.
Looking forward, most Americans are slightly more optimistic about the state of the housing crisis. When asked where they think the state of the housing market will be in two years, 46.9% of respondents said it will improve slightly, 24.3% said it wont’ change, 17.6% said it will get slightly worse, and 8.4% said it will get much worse. Still, most Americans are not holding their breath for a drastic change, with only 2.7% saying they expect a full recovery within the next two years.
Foreclosures on a Personal Level
There’s no denying that the housing crisis has had a drastic impact on America and its economy, but what about the average person? Surprisingly, the highest number of respondents, 40.9%, said the housing crisis has not had any impact in their lives. Only 14.9% said the housing crisis has had a drastic impact on their lives, 21.1% said it has had a moderate impact, and 23.1% said it has had a minimal impact.
In addition, 65.3% of AYTM.com’s respondents said they don’t know anyone who has received a foreclosure filing within the last five years, while 34.7% said they do know someone who has received a foreclosure within that time frame.
Whatever their level of personal involvement, it’s safe to say that most Americans do not feel the government is working hard enough to stop this crisis. 57.8% of AYTM.com’s respondents said they are not satisfied with the government’s efforts to slow down foreclosures and end the housing crisis. Only 12.9% said they were satisfied with the government’s efforts, and 29.3% had no opinion.
With skewed data, a government that is not doing enough according to most people, and a bad situation with no end in sight, it’s hard to say what it will take to improve the state of the US housing market. When will Americans start to feel more secure about their homes and their financial futures?