Is the housing market near the bottom?
I’ve been saying for a while now that the first quarter of 2010 we should be at or near the bottom in our housing market. We have two major factors holding us back at this time, one employment and two banks.
As long as people are still being laid off, we can expect mortgage defaults thus increases in short sales and foreclosures. This will hurt home prices if this continues to happen.
Banks are holding a tremendous amount of properties that they will need to unload and according to my understanding, they are just dripping out the inventory not a full scale unload. If that were to happen, it could drop the housing market further, which would not be a good thing.
Confirming my thoughts on the housing market, an excerpt from the CEO of Freddie Mac Charles Haldeman recently stated that we are at or near the bottom in our housing market.
“The big downside risk to all this is a large wave of homes now in foreclosure potentially hitting the market at prices that are destructive,” Haldeman said.
Source: Reuters News, Soyoung Kim (01/26/2010)
« Fannie Mae to Offer Closing Costs on Foreclosed Properties | Home | 1009 E Tampa Ave, Cherry Hill, NJ 08034 »
Leave a Comment