Americans everywhere are feeling the pinch of the recession. The real estate market in particular has taken a huge dive in the past three years. While this may not be so bad for first-time home buyers in Greenville, especially with the government’s $8000 refundable tax credit, homeowners are discouraged about their increasingly decreasing home values.

Home foreclosures are on the rise as well, with February hitting a new monthly high for number of foreclosures, as reported by Foreclosures.com. Foreclosures occur when the bank (or other secure creditor) repossess the home and attempts to sell it after the owner has failed to comply with their mortgage agreement. According to housingpredictor.com, each foreclosure damages the economy an average of $225,000, which is the amount of the average mortgage. With Greenville foreclosure numbers now at an all-time high, the current economic crisis will only worsen until we see improvements in the Greenville real estate market.

Short sale numbers are also rising. A short sale in real estate is a sale in which the proceeds from the sales fall short of the balance owed on the home’s mortgage. The Greenville lender agrees to accept less than the total amount due. Short sales are an alternative to bankruptcy and foreclosure in today’s economy. The impact on the seller’s credit is less than that of a foreclosure–short sales remain on a credit report for 7 years, but it is typically possible to obtain another mortgage 1 to 3 years after the short sale takes place.

As economic and housing market conditions worsen, Greenville residents are forced to rethink their spending habits. But things will get better. The purpose of investment, including real estate, is to invest for the long term, not just to make a quick buck and then pull out. The housing market it just like any other economy and will have its ups and downs over time. Its important to remember that for both the highs and the lows.