July 14, 2008
Housing Market: Can It Really Get Any Worse?
Housing Market: Can It Really Get Any Worse?
An even gloomier scenario may be in store for an already ailing U.S. housing market if the overall economy slips into a recession, according to UBS Securities analysts.
Falling home prices, soaring foreclosures at a time of tighter lending and rising unemployment are all weighing heavily on an already troubled housing sector, the analysts said during a conference call recently.
Lack of funding is the biggest problem facing the housing market right now, according to the analysts, with subprime and Alt-A securitized markets shutting down and banks being forced to cut their mortgage lending dramatically due to capital constraints. So-called Alt-A loans are made to borrowers with less than prime credit ratings but who are above subprime.
Fannie Mae and Freddie Mac have also cut back their lending to stressed subprime and Alt-A borrowers with low incomes and high loan-to-value ratios.
Foreclosures, which have been building over recent months as borrowers default on risky subprime home loans, are not expected to peak until late 2008 to mid-2009.
So where do you see the housing market? We'd love to hear your opinion. Use the comment link below to sound off about it. Your email address will not be published here, even though it is required in order to post your comment.
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Comments on Housing Market: Can It Really Get Any Worse? »
Publius @ 12:25 am
Housing needs to drop to the levels that brings it back to its historical ratio of house-prices-to-rent and house-prices-to-household-income. That ratio held relatively steady for the whole of the 20th century. Therefore, home prices on Long Island have another 20% - 25% in declines to go. May be hard to believe, but everything points to it.
Best Buyer's Broker @ 6:43 pm
Seeing the future is always a guess. Some guesses are right on,
others totally miss the mark or fall somewhere in between. Based on current market trends, as reported by the Long Island Board of
Realtors, during the last several months the Long Island market has shown an increase in month over month home sales. If this trend continues, your prediction may not come to pass, the future will tell.
Recent home sales month by month (as reported by Long Island Board of Realtors) for the Long Island market (Queens, Nassau and Suffolk Counties)
Month #sales %increase/Decrease
Dec'07 1854
Jan'08 1753 - 5.45%
Feb'08 1476 -15.80%
Mar'08 1551 5.08%
Apr'08 1566 0.97%
May'08 1964 25,42%
Jun'08 2229 13.49%
If anyone would like individual stats for their particular area,
please email me and I'll provide the following:
# listings currently on the market
Average asking price of available homes
# homes in contract as of that date
Average price of homes in contract
Total homes sold last month
Total homes sold same month last year
% increase or decrease
Average price of homes sold last month
Average price of homes sold same month last year
% increase or decrease
The above information is just some of the information that I analyze when researching what I think a particular property should sell for.
I then discuss that info with my client and they decide what they
want to do. As an Exclusive Buyer's Agent, I never 'push for the
sale'. My desire is for my client to make an informed intelligent
decision that they are happy with.
Again, thanks for your thoughts, I hope our market is beginning to
turn in the right direction.
Ira Freireich, Broker, CFP
Best Buyer's Broker Realty (An Exclusive Buyer Agency)
Office - 516 887-6901 Fax - 516 599-6160
http://www.bestbuyersbroker.com
ira@bestbuyersbroker.com