U.S. Real Estate Falls Into National Recession
The worsening U.S. real estate market has fallen into a deepening national recession, according to a new report by Housing Predictor.
Housing Predictor analysts arenít concerned about whether there will be an impact on the overall national economy, but instead just how severe its impact will be on the economy. The over-whelming majority of local real estate markets regularly surveyed by Housing Predictor have now developed into such slow moving markets with ailing sales and weakening local economies that they are in full blown real estate recessions.
Housing Predictor forecasts more than 250 local housing markets in all 50 U.S. states and keeps consumers up to date on changing market conditions.
The impact of the mortgage melt down is making major inroads into the conventional mortgage markets with increasing notices of defaults. Foreclosures are already at historic highs and are projected to reach at least 3 million through 2009 by Housing Predictor, which forecast the crisis more than a year ago.
The mortgage melt down started in subprime mortgages made to those with damaged credit histories and is now spreading quickly into conventional mortgages with increasing foreclosures. The record foreclosures have produced a new burgeoning foreclosure investors market, where buyers are able to purchase properties for as much as 60% off their peak prices.
The fall out is resulting in record losses for many mortgage companies and lenders, more than 120 of which have either closed their businesses, filed for bankruptcy or ceased lending operations all together.
Wall Street investment bankers and mortgage companies are only beginning to report the staggering losses, which range into multi billions of dollars.
Housing markets scattered throughout the nation at first slowed after investors on Wall Street became nervous over the over inflated housing prices and stopped buying securities that backed the mortgages in mass. Home prices are falling at record rates in many markets at as much as 40 to 50% from their peak, worse than when the U.S. Savings and Loan Fraud Scandal reached its peak in the early 1990ís.
To read the full report on the National real estate recession, check local market forecasts, find where the best buyers markets are and search foreclosures visit http://www.housingpredictor.com
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- Mike Colpitts
- Housing Predictor
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