The Real Estate Nightmare

Facts About the Real Estate Nightmare

Business Insider boiled it down to a “simple” list… why the US real estate market is in such trouble. I don’t think any of the items on the list are a great shock to anyone, but together they spell big trouble. It points to the fact that we shouldn’t expect the housing market to recover anytime soon. That’s bad news for sellers, but good news for buyers.

1. Record low new home sales in May (32.7% drop).
2. Home prices are falling (median price down 9.6% over 2009).
3. Tax credit sales were revised sharply down (previous estimates were too
optimistic!).
4. May home sales show an irrefutable double dip.
5. May housing starts fell 10% over 2009.
6. Internet searches on real estate down 20% (see previous story).
7. Freddie & Fannie are a fiscal disaster.
8. The tax credit that was supposed to stabilize the market has expired.
9. Foreclosures are rising – up 18.6% in the first quarter of 2010.
10. Second wave of adjustable ARMs reset next year.
11. Home lending is getting harder due to tighter standards.
12. Mortgage delinquencies at record levels.
13. The overall economy reset will sink the housing bubble.
14. The oil spill will hurt the housing market.