From economist Stan Humphries:
Humphries said home sales have reached a bottom, but prices likely won't find a floor until the third quarter of 2010. Humphries expects South Florida prices to hit bottom later than that.
2. We’ll see a return to historical appreciation rates after prices bottom
The housing bottom likely will be long and flat. Historical appreciation rates won't return for three to five years. Humphries said housing demand is being hurt by the number of underwater borrowers who can't move from their homes. He also says historically low mortgage rates are destined to increase, also affecting demand.
3. The worst of the foreclosure crisis is over
Foreclosure rates are increasing nationally and likely will stay elevated because of the jobless picture and the large numbers of underwater borrowers.
4. The homebuyer tax credits saved our bacon
The credits did stimulate sales, especially during the first wave in 2009. In its second incarnation, however, the tax rebates pulled demand forward from future months. As a result, sales are likely to decline in the second half of 2010.
The housing bottom likely will be long and flat. Historical appreciation rates won't return for three to five years. Humphries said housing demand is being hurt by the number of underwater borrowers who can't move from their homes. He also says historically low mortgage rates are destined to increase, also affecting demand.
3. The worst of the foreclosure crisis is over
Foreclosure rates are increasing nationally and likely will stay elevated because of the jobless picture and the large numbers of underwater borrowers.
4. The homebuyer tax credits saved our bacon
The credits did stimulate sales, especially during the first wave in 2009. In its second incarnation, however, the tax rebates pulled demand forward from future months. As a result, sales are likely to decline in the second half of 2010.
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