In a lead story, the Wall Street Journal (WSJ) paints a dismal picture of the housing market in 2010. Uncertainty over the extension of a home-buyer tax credit sent new-home starts in October crashing down a full 10.6% from September, and starts of single-family houses fell 6.8%. That's the lowest level since April, the Commerce Department said. This news suggests that foreclosures are not only going to keep rolling in, but that they may actually increase. Richard Dugas, chief executive of Pulte Homes Inc., the nation's largest home builder, warned investors: "As we look out to 2010, we are expecting difficult conditions to continue." Wednesday's data prompted some economists to revise their fourth-quarter forecasts down slightly. Macroeconomic Advisers moved its GDP estimate down to 3% from 3.2% and Nomura Securities predicts 3.4% growth, down from 3.6%. The data adds to the suggestion "that the recovery is a little bit rickety," said Zach Pandl, an economist from Nomu
ra. Given that 3.4% of U.S. households -- or about 1.9 million homeowners -- are 120 days or more overdue on their payments, and that millions of homes are expected to go through foreclosure over the next few years, adding to supply, it's a fair bet that foreclosure problem won't be gone anytime soon.
Hi Eric, Yes, I have heard also, that we may have another wave of foreclosures. The news on tv tells us things are getting better.. I do hope they are. Thanks for the info!
And, like idiots, we just set ourselves up for this with the extension of the tax credit for first-time buyers. Odds are most of those jumping into home ownership to take advantage of the tax credit are going to be lower-income workers--and who are the first to get laid off?
Oh, yeah. We'll see another wave of foreclosures all right.
I just attended a meeting with the fdic in florida..and they are saying that foreclosures are on the way