| Two years ago, thousands of people rushed to get a | | | | enough money in the bank for a down payment. Their |
| piece of the booming housing market. Mortgages were | | | | credit is good, and both have steady incomes. They |
| easy to get, even for buyers with little or no credit. | | | | have decided to rent until interest rates go down. Says |
| Once interest rates shifted however, buyers who | | | | Cheryl, "With all the doom and gloom you see about |
| received sub prime mortgages were no longer able to | | | | real estate these days, we figured it'd be a good idea |
| make their monthly payments. Now the housing | | | | to just wait a year or two. We want a home, definitely, |
| market is being flooded with foreclosures. | | | | but we don't want to pay through the nose. We can |
| Lenders have learned their lesson, and are much | | | | save money for now by renting, so that's what we'll |
| stricter with their lending policies. Now, many people | | | | do until the market changes." |
| who would like to enter the housing market are unable | | | | Many owners who have lost their homes to |
| to obtain sufficient financing. This has led to a serious | | | | foreclosure are now heading into the renting world. |
| drought in the buyers' pool. | | | | Their credit has been badly damaged, and they don't |
| There are also many people who were considering | | | | have enough money to buy a new home. Without a |
| buying a home, but have now been scared off by the | | | | suitable rental unit, many of these people would end up |
| rate of foreclosures. With buyers hesitant to make a | | | | on the streets. They have no choice but to take a |
| purchase, sellers are having a tough time unloading | | | | rental while they rebuild their financial security. |
| their homes. | | | | This foreclosure situation is the main reason that the |
| This stalled housing market has led to a substantial rise | | | | cities that were booming in 2005 are now becoming |
| in the rental market. | | | | rental hot spots. Places like Miami, where buyers |
| Buyers who are unable to secure financing must face | | | | flocked to scoop up the great housing deals, now find |
| the reality that they can't purchase a home at this time. | | | | themselves in trouble. Foreclosures are most rampant |
| These folks need to sit tight in a rental unit while they | | | | in these cities, and the housing market has stalled |
| work on building their credit rating, and save money for | | | | completely. In these areas, where demand is high, there |
| a down payment. Experts are saying that the housing | | | | has been a substantial increase in rental rates. In other |
| market will bounce back within a year or two, so | | | | areas of the country, where new construction has led |
| potential buyers should focus on improving their credit | | | | to an increase in available units, rents are decreasing |
| and financial situation until things shift. | | | | slightly in order for landlords to remain competitive. |
| Buyers who are eligible for home loans are also finding | | | | Consider riding out the housing market turmoil by |
| this a good time to take a step back until the housing | | | | renting. You can find a beautiful property to suit your |
| market is on steadier ground. Young urban | | | | family's needs, while saving money and building your |
| professionals Cheryl 28, and Raoul, 34, already have | | | | credit at the same time. |