Negative Home Sales News

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Uncertainty and tougher lending rules keep buyers out of the market.

Orlando Weekly Market update 4/28/07

Despite a great buyer market, buyers seem to stay out of the market and wondering what is coming next. There are not many good news stories around to drive buyer demand and the headlines, wherever you look forecast an even bleaker outlook. This week alone, this headline was all over the internet.

Economists paint bleak picture of housing market:

Eric Belsky, executive director for the Joint Center for Housing Studies at Harvard University, said that home builders are “trying to pull out of a nosedive” by dramatically cutting back production rates. “They’re trying their damnedest to get out of this,” he said.

The unsold inventory had ballooned more quickly than anticipated, though, and single-family overbuilding is a key threat to house prices and starts, Belsky noted in his presentation at the conference.
You really do not have to be a Harvard trained economist to see the problem, when every day you are adding 45 more homes to the inventory, that is net after selling 60 homes, therefore we are heading into hot waters and unchartered territories. I believe we will see some very steep price adjustments caused by continued increase in inventory, new stringent lending guidlines and an avalanche of foreclosures. My big concern is that the Feds are tightening the lending rules where the pentilum will go too much to the right and throw the housing market into a real recession. Keep this in mind, when the stock market does well, housing is not and visa versa.

So much for my sob story this week.

Gitta

Discussion Forum

Topic	Posts	Last Poster
T-I-Cs start with T, and that stands for Trouble.	1	PeterWunsch
Loan Modification Software	4	aiopqw25
Where did all of the PMI go?	4	TeresaEdwards
Do you have the best price today? Post FREE on PROPERTYFIRESALE.COM!	2	COX
LEGITIMATE HARD MONEY!!!!!!	1	COX
Looking to know more about real estate investing.	4	Marcus
Don't Give Up - Show Up!	1	ProspectsPLUS
Loan Modification Software CasiMod	1	mikodr
Property Management	7	lutik22
NEED AGENTS / & REFERRALS	87	BreckenridgeRealtor

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