Four Years Into The Worst Crisis In History And Still No Reform
By Barry Ritholtz - November 3rd, 2009, 5:09PM
Tweet
Facebook
Reddit
Digg this!
Comments
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
November 3rd, 2009 at 5:35 pm
I think before any meaningful recovery in real estate prices can take root, we need to overcome three major obstacles…
“Rebound Obstacle #1: Inventory Glut. Nearly 10% of all homes built this decade are sitting vacant, compared to a historical average of 2.2%. In total, we’re sitting on almost 10 months worth of inventory versus a historical average of four months.
Rebound Obstacle #2: Loan Resets. Forget subprime. We’ve already worked through 80% of those resets and written down $1.47 trillion in the process. Now we’re facing a $2.5 trillion mountain of Alt-A loan resets. The first big wave hits mid-2011, with the peak expected to come in early 2013.
Rebound Obstacle #3: Foreclosures. One in four homeowners are now underwater. If we break it out by loan type the picture gets worse – 25% of prime loans, 45% of Alt-A loans, 50% of subprime loans are severely underwater. Add in the 6.5 million Americans out of work since the recession began and it doesn’t take an Einstein to predict where foreclosures are heading.”
Read More:
http://www.housingnewslive.com/articles/reasons-housing-market-going-down.php
November 4th, 2009 at 4:52 pm
Mr. Ritholtz, how do you embed Yahoo vids? I can’t figure it out.