Per an article published by Reuters on Dec 3rd, 2009, the U.S. Housing Crisis is FAR FROM OVER. Mark Zandi is the Chief Economist for Moodys Economy.com. He states the home prices will continue to decline with the large number of foreclosures that will be filed in 2010 and increased buying will continue to occur. Here is a quote from Zandi explaining why home prices have been rising in the past couple of months:
“Home prices in many regions have been rising. That is because foreclosure sales fell over the summer and fall as mortgage servicers have tried to put stressed
homeowners into the Home Affordable Modification Program and other modification plans,” he said.
“This lull in foreclosures sales has resulted in the price gains in the past few months,” he said.
“Foreclosure sales will increase, and home prices will resume their decline by early 2010 as mortgage servicers figure out who will not qualify for a modification,” he said.
So dont even give a thought or a even a slight hint the the housing market is rebounding. Based on Zandis assessment, what this data is really saying is “Buyers, prices are set to go lower next year! Buy Low, hold, Sell HIGH!”
Other reasons why buyers have been out in droves is due to the continued low mortgage rates and the extension of First Time Home buyers tax credit. If you are thinking that you do not qualify for this credit because you already own a home at some point in your lifetime, think again! Based on Obamas First Time Home Buyers tax credit definition, you qualify for the tax credit if you have not owned a home in the last 3 years! But do not be fooled!!!!! This credit needs to be paid back in the future, it is not free money. (For more information on Obamas First Time Home Buyers Tax Credit initiative, check our blog titled “The Real Deal of Obamas Home Buyer Tax Credit”
Also, Zandis following comments is exactly what WHB Solutions have been predicting for short sale opportunities in 2010!
“With so many homeowners so deeply underwater and unemployment very high and on the rise, the foreclosure crisis will continue putting more pressure on home prices,” he said
Well, okay, its not like its rocket science, we know its common logic to make the above prediction. FYI Zandis forecast for the unemployment rate is that it will peak at 10.7 percent in the third quarter of 2010. Lets see how true this will hold. Previous predictions by various economist that unemployment would not reach over 10% until 2010 was already proved untrue in October of this year.
Full Article Resourse: www.whbsolutions.com/blog/