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The Perfect Storm

Leading research and indicators tell us there's a perfect storm brewing:

  • John K. McIlwain, senior resident fellow at the Urban Land Institute, expects home prices to fall another additional 10% this year. That could push foreclosures and underwater mortgages over 21 million by December 2010.
  • Home sales inventories are falling. Contrary to popular belief, this isn't good news for sellers, because higher prices (and even bidding wars) increase costs for buyers, who are too smart (and too worried about unemployment) to be burned by bidding wars again this time. Sales will fall as they return to the sidelines.
  • Of course any sales depend upon employment, which stands at 10% nationally, and is higher in 16 states, including disastrous real estate markets (DC, FL, CA) and states where the real estate market was considered "balanced." Job losses mean more foreclosures and less purchases.

From: The Day After, Part 2.
POSTED by:  Matthew Ferrara, January 29, 2010

  • January 29 2010 - Hampton
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Answers (3)

Very good information
  • January 30 2010
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Did you hear the news...
  • February 08 2010
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Sheldon Adelson is heading to FLA and will create 7000 permanent new jobs!
  • February 08 2010
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