The Credit Slump

One of the more obvious reasons that we are in the midst of such a housing crisis is that the same banks who had no problem lending money to anyone who could fog up a mirror now seem to have a problem loaning money to very viable purchasers. We will not see a complete housing market turnaround until credit starts to become more readily available.

Bank after bank is going out of business and the requirements necessary to obtain a mortgage have become herculean in nature. Is it any wonder that so many homes are languishing on the market? I still believe that there will always be people who want or need to buy a home for their family however it has become exceedingly difficult to qualify for a mortgage.

There are many very good deals on houses that can be had if you can get a mortgage or you are fortunate enough to have an ample supply of cash. Every day there are houses coming onto the market that are priced at 50 to 60% of what they sold for back in 2004-2006. Imagine buying a home that sold for $450,000 in 2005 for $225,000 today. It's out there but the catch is you must be able to get the financing.