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Foreclosures Set Record High in July

Gone Are the Days of the McMansion?

US home foreclosures are still occurring at record rates. July's foreclosures were up seven percent from June and 32 percent from a year earlier — one in every 355 households with a loan got a foreclosure filing. The jump can be partly attributed to the rising unemployment rate as people lack wages to pay their mortgages.

The good news is that new homes being built are seven percent smaller (about the size of one average-sized room) than homes built in the last 15 years. Hopefully, the downsizing means some people are smartening up and not biting off more than they can chew.

Sarah Susanka, author of the book The Not So Big House, commented, "As more and more people build or remodel homes that satisfy in quality rather than quantity, there will be a huge shift in what we perceive as desirable." What do you think — will there be a permanent shift to more modest homes?

Image Source: Getty
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