Subject: Fwd: Wall Street Journal reported on Wed 9/21/2011 Housing forecast call for pain
A summary of the article includes:
Recovery of housing market and recovery of the economy are dependent on each other
Housing market won’t recover any time soon
Prices have fallen 31.6 % since peak in 2005
Prices will recover only a fraction of loss in next 10 years leaving low equity
The large number of repossessions is driving prices down
Lower consumer spending people feel poorer, less moving activity, improvements with cash vs home equity loans, less improvements,
Government programs for credits and refinancing haven't worked and may have made things worse. For example, It can't help that the justice department is suing banks for selling improperly vetted mortgages to Fannie Mae and Freddie Mac.
No wonder the consumer confidence is so low.
Steve Reilly
Higgins Group
Best Practice Real Estate
203-246-7373
Home Forecast Calls for PainPrices to Stumble Through 2015, Economists Say, Weighing Down Recovery
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BY NICK TIMIRAOS
Economists, builders and mortgage analysts are predicting the weakened U.S. economy will depress housing prices for years, restraining consumer spending, pushing more homeowners into foreclosure and clouding prospects for a sustained recovery.
Home prices are expected to drop 2.5% this year and rise just 1.1% annually through 2015, according to a recent survey of more than 100 economists to be released Wednesday. Prices have already fallen 31.6% from their 2005 peak, as measured by the Standard & Poor's Case-Shiller 20-city index.
If the economists' forecast is accurate, it means housing faces a lost decade in which home prices recover just ...
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