According to an article in the Star-Telegram, Texas has experienced a steady decline of home sales mostly due to a large number of foreclosures , job losses and lack of available credit. In June, Texas only sold 6,782 single-family homes, a 14 percent decline from June 2008.
The article said:
“Buyers are still finding it hard to borrow money, unless they have spotless credit and a 20 percent down payment, and those buyers getting FHA financing say the process to get a loan is lengthy, which is contributing to the falling home sales, Gaines said. Between 15 and 30 percent of home sales in the state clearing the market are distressed sales, such as foreclosures, short sales and lender-owned properties, he said.”
With the number of job losses continuing to rise, there will be fewer people with “spotless” credit and even fewer with a 20% down payment in the coming two years when the 2nd wave of foreclosures are predicted to arrive. The combination of job losses, restricted credit and foreclosures are a deadly force that could do serious damage to the economy as homeowners who need to sale are unable to do so because of the glut of foreclosures and distressed properties on the market and homeowners who are employed and want to buy are unable to do so because of restricted credit availability. These factors could continue the foreclosure crisis we have been unable to slow, that’s why we must act now to stop the foreclosure crisis.