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The government's strategy of subsidizing mortgage payments for delinquent borrowers has drawn scrutiny. A concerning number of FHA borrowers, around 56,000, should have entered foreclosure but were instead shielded through government-backed programs. Consequently, a surplus of homes that should have hit the market remains artificially stalled.
Expectations for the Future
Despite the current detrimental economic landscape, some argue that conditions are relatively better than previous years. With average home listings selling for 1.8% less than their asking price, buyers may find slightly improving circumstances in the near future. However, these marginal gains do not signify an overall recovery.