Is The Glass Half Empty or Half Full?
September 30th, 2009 categories: Just "My" Opinion
When it comes to predicting the state of the economy and the real estate market its like looking at a glass of water.
Is it half full or half empty?
Neither.
We are no where near a recovery nor are we at the bottom.
STOCK MARKET:
In the short run the stock market will get better before housing .
People who have lost a lot of personal wealth are anxious to make up some of that loss.
With low interest rates on CD’s, Treasuries, The Stock market appears to be half full.
REAL ESTATE
Real Estate is another story. Real estate in general lags behind other markets and with unemployment data at 10% nationally I think the Real Estate Market glass is half empty.
I predict we will see more foreclosures as more people are going to be unable to modify their loans or pay their mortgage while unemployed.
I think home prices will continue to decline because of the increase in foreclosures.
I think there will be fewer home buyers due to tighter credit, or if the First time Home buyer credit is not renewed or if FHA runs out of money.
According to the Home Builders Association there will be fewer new homes being built due to lack of credit and financing.
I would love to hear your comments….
More people are likely to get bank loan modification than through the government.This is due to the changes of economic growth so.. Qualified individuals can get a mortgage
refinancing through a government program.
I read this here: Bank loan modification is more likely to end
in defaultUltimately, it has yet to be a real home run. As a result, banks have been stepping into the void to modify the
mortgages of customers on their own. This isn’t really a victory for the Libertarian crowd though. Homeowners are more likely to
default on payments if they receive a bank refinancing.