realestate
Real Estate

Real Estate Heading for a Double Dip Recesssion

Mon Jun 21, 2010 8:04 am
<<     >>
Comments: 0 Views: 163

Real Estate in the United States has for the last three plus years been on the precipice of disaster. Only because of creative financing by the Federal Government has there not already been a precipitous disaster in Real Estate in general.

Special programs like the recently expired Home Buyers Tax Credit and the Federal Reserve, Ben Bernanke,  having intervened with "Fannie & Freddie" has delayed the inevitable.

Millions of homeowners have not paid a mortgage payment in a year or more. Banks are now aggresively  processing those homes that were in "Foreclosure Limbo". The net result will be those homeowners paying rent somewhere; not having that disposable income to spend on whatever.

Moreover the number of foreclosures on the market will jump significantly. Home  Prices will fall sharply, probably at least 20%. Short Sales will predominate and Realtors will not be so willing to carry around buyers that cannot actually buy a home.

The cascading affect will take its toll on Property values and logically Property Tax Revenues.

Meredith Whitney, Founder of Meredith Whitney Advisory Group LLC, had some compelling thoughts on Real Estate on CNBC today June 21st.  Whitney declared that there would be  a "Double Dip Recession in Real Estate this Year". Her comments should be taken seriously. 

I would challenge anyone to present a cogent argument to the contrary. For those that have purchased homes in the past year the best approach would be to ride out the storm of deflated home values and plan on living in your home for an extended period of time, at least a decade. Do not make the mistake of thinking that you can sell in a few years and move on with a profit from your home.

 



Comments
Name:
*
URL: http: (ex. cnn.com)
Comment:
*
Number:
Math (19 + 3)
* required

© 2019 Christonium LLC

Christonium.com
|
Terms of Use
|
Privacy
ccc