| April 21, 2014

Is Another Housing Crash on the Horizon?

Over half of for-sale homes in seven major U.S. markets are unaffordable for mainstream buyers.

Local residents in Southern California, San Francisco, Miami, Denver, and Portland either don’t make enough money to buy a home or are paying a larger share of their monthly income toward a mortgage, according to a new analysis by real estate experts Zillow.

In San Francisco, for example, nearly 40 percent of a local’s monthly income goes toward their mortgage – when most banks believe you should not devote more than 28 percent. Zillow Chief Economist Dr. Stan Humphries remarked that…

“As affordability worsens, we’re already beginning to see more of the kinds of worrisome trends we saw en masse during the years leading up to the housing crash. These include a greater reliance on non-traditional home financing, smaller down payments and a greater pressure to move further away from urban job centers in order to find affordable housing options.”

A piece of good news that surfaced from this study is just one third of homes (33.6 percent) are currently unaffordable in a variety of metro areas. But then again, as mortgage interest rates increase (as they currently are doing), in concert with home values, the ability to afford a home falls.

Gary Herman, President of Consolidated Credit, warns against overextending when buying a home…

“Don’t let your mortgage payments eat up your monthly income. If you can’t afford the home look for another one – don’t finance a place that will put you in debt. There are options available to you when shopping for the right mortgage that fits your financial situation.”

If you’re in the market to buy a home and could use some professional guidance don’t hesitate to call one of Consolidated Credits certified housing counselors for free. Consolidated Credit is approved by the U.S. Department of Housing and Urban Development (HUD) to provide housing counseling.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice.
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Consolidated Credit Consulting Services, Inc. has been verified as the owner or operator of the Web site located at www.consolidatedcredit.org. Official records confirm Consolidated Credit Consulting Services, Inc. as a valid business. Call us today and see what we can do for you.

Consolidated Credit is a Certified ISO 9001 company, as verified through Bureau Veritas Certification.

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

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