Sarasota homes for sale face uphill battle if predictions made by Fiserv Lending Solutions come true!
Did you know "experts" predict more foreclosures and falling house prices in 2010?
Home prices to fall in 2010 – MORE foreclosures coming!
Is this a sick joke?
Not according to two “trusted” sources.
Fiserv Lending Solutions, a financial analytics firm, forecasts that prices will fall in all but 39 of the 381 markets it covers, with an average drop of 11.3%.
…average drop of 11.3%?
Scary indeed! In Sarasota, we’re told houses are selling and the market is stabilizing.
Click Read More below now for unsettling housing market predictions from Moody’s and Fiserv Lending Solutions.
SARASOTA HOMES FOR SALE FACE MORE CHALLENGES(?)
“We’ve seen recent price stabilization because of low mortgage interest rates and the impact of the first-time homebuyers tax credit,” said Pat Newport of IHS Global Research. “But there are really good reasons to think prices will now start going down.”
There are three main reasons for the reversal:
- Another flood of foreclosures
- Rising interest rates
- End of the tax credits and gifts.
According to Gus Faucher, the director of macroeconomics for Moody’s Economy.com, the huge number of foreclosures that remain in the pipeline is the big problem. In fact, Moody’s upped its estimate of defaults recently because of shortcomings of the government-led mortgage modification programs.
Trial workouts are not being made permanent and completed modifications are (re)defaulting at high rates. “There are going to be fewer [successful] modifications than we thought.”
However, he says most of the price decline has already occurred and Moody’s forecast is for only another 8% drop.
The worst-hit markets will be the ones suffering the most foreclosures, places like Arizona, California, Florida and Nevada.
Some analysts, according to Newport, also think rates for a 30-year mortgage will pass 6% next year as the government curtails housing market support. Finally, many economists see the end of the tax credit in April as a significant brake on home prices.
Got a comment about these predictions? Scroll down & share your thoughts. I hope these “experts” prove wrong in their predictions
Sarasota homes for sale need to reach equilibrium – we don’t need more challenges! In many posts, I have written about “expert” predictions to the point of depressing myself. I want to believe sales (at lower prices) is moving the Sarasota housing market in the right direction. Still, more homeowners continue losing jobs, unable to make their house payments.
