Mark Zandi, the chief economist of Moody's Economy.com predicts that we are not through the housing correction yet. According to him, housing will fall 5-10% more nationally and as much as 30% in places like Miami and Las Vegas.
This matches data from the S&P/Case Shiller report that came out today that showed that housing was showing weakness in many markets. While the rate of decline has slowed, prices are still coming down. Zandi cites several reasons for why he believes housing hasn't hit bottom:
1. Zandi estimates more than 2.4 million additional foreclosures will hit the market in 2010, depressing prices and increasing inventory.
2. Unemployment at 10% and above erodes consumer confidence and prevents many from purchasing a home or affording the one they live in.
3. Policymakers are beginning to scale back their support for the housing market. The Fed is winding down its purchase of mortgage-backed securities and the Treasury will eventually end its home buyer tax-credit.
4. Mortgage rates are going up.
Read the entire analysis and see how your city is projected to do in 2010.
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