Falling home prices (and the mortgages written on these homes) are the root cause of the current financial crisis and until house prices stabilize and recover it is unlikely that the financial sector will. Historically, recessions that follow housing busts tend to be deeper and as consumers we need to prepare for this. While across the board declines do not bode well for the global economy either, one silver lining for American's is that at least the rate of decline of US housing is slowing from its 15% rate over last year. This may mean we may see house prices stabalize in 2009, and possible start appreciating in 2010.

 

Submitted: Oct 27, 2008    Views: 92    Comments: 1    Likes: 1   


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thedorightman
(Unregistered)

What a FANTASY!...Like i have said for years, until we get back to the pricing levels of 1993, nothing good happens. Just wait until the OPTION ADJUSTABLE mortgages start resetting in a big way in 2010, not to mention the ALT-A; SUB-PRIME; HOME IMPROVEMENT; PRIME; and CREDIT CARD loans that the borrowers will walk away from as the price of their investment {that they paid too much for} continues to go down. Trying to talk a bottom into the market will never work.

Posted: Oct 28, 2008



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