Obviously, more buyers can afford cheaper homes, which means they sell and are taken off the market sooner than a much more desirable, more expensive home. It only stands to reason that more people need homes that are not in the higher price range during a recession. Keep this in mind when selling a house.
The dangerous combination of poor mortgage lending practices coupled with the slow economy cost the country many jobs, which leaves unemployed homeowners unable to pay their mortgages. Drive down nearly any street and you will notice homes for sale, some owned banks and mortgage companies. Part of what is happening in the market now is the number of foreclosed homes for sale is increasing, a trend that is very frightening. Bad decisions by lenders cost them their profits, and at the same time are costing homeowners their homes.
Whenever you see vacant homes, those are usually foreclosed homes because lenders don’t want to deal with the hassles of leasing homes in the foreclosure process. To avoid having an inventory of vacant homes, especially vulnerable to theft and vandalism, many lenders will structure arrangements for the homeowners to stay in their home and pay rent, which can be a very workable solution for both parties.