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    Real Estate - U.S. Cities In Free Fall. Find Real Estate ... of Sun Belt cities, still hasn't begun to recover. ... Florida's real estate market keeps falling even as some ...

    http://realestate.yahoo.com/promo/us-cities-in-free-fall.html

  2. When will YOUR housing market recover? - Mortgage Rates ...

    ... how to analyze what's happening with the real estate market ... When will YOUR housing market recover? ... as to when home prices will stabilize in U.S. housing markets.

    http://www.bankrate.com/finance/mortgages/when-will-your-housing-market-recover--1.aspx

  3. The top 10 housing markets of the future - MSN Real Estate

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    http://realestate.msn.com/slideshow.aspx?cp-documentid=25109508

  4. States With the Healthiest Housing Markets - Yahoo! Real Estate

    Percent of U.S. Market: 0.07%. And the healthiest real-estate market in the U.S. is … North Dakota! “There’s a very low cost of ownership there and a very low ...

    http://realestate.yahoo.com/promo/states-with-the-healthiest-housing-markets.html

  5. Real estate market likely to recover later this year ...

    The domestic real estate market was expected to recover in the second half of this year but the recovery ... Al-Qaeda plot against US-bound airliner foiled: officials

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  6. Will The US Real Estate Market Ever Recover To Soaring ...

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  7. Recovery for the Real Estate Market - Australian Financial ...

    There's no doubt the U.S. equity markets are in the midst of a decent upside run. Take a look at this chart of the S&P 500 - a good stand-in for the broader U.S ...

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  8. ‘Housing Market Is Struggling to Recover

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  9. U.S. Housing May Not Recover Until 2014: Survey - Bloomberg

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  10. U.S. Commercial Mortgage Defaults Decline as Prices Recover ...

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  • Report: Housing Market Recovery Has Officially Begun - TIME
    TIMEReport: Housing Market Recovery Has Officially BegunTIMEAt many points during this ugly plunge, pundits have erroneously called the “bottom” of the housing market – saying things could finally get no worse. And then they got worse. The American public can therefore be forgiven for eyeing the latest round of ...US Housing Market ''Starting to Recover''IPINglobal.comHousing's Future: Renting and DownsizingWall Street Journal (blog)New housing forecast mostly good for walkable communitiesNatural Resources Defense Council (blog)all 9 news articles »
  • Housing Mortgage Market Reform Key to Housing Recovery - MarketWatch (press release)
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  • No Recovery Yet for the U.S. Housing Market; Report by Top Financial ... - Houston Chronicle
    No Recovery Yet for the U.S. Housing Market; Report by Top Financial ...Houston ChronicleMichael Lombardi, lead contributor to Profit Confidential, believes that the homeownership rate will continue to drop in the coming years and that the ideas that the housing market has bottomed and that foreclosures are a thing of the past are simple ...and more »
  • Housing Market Recovery Has Officially Begun - Seeking Alpha
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  • U.S. Housing Market Finally Reaches a Turning Point - MarketWatch (press release)
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  • Fed Governor Calls for Lending Reform - NuWire Investor
    Fed Governor Calls for Lending ReformNuWire InvestorA Federal Reserve Governor says the US housing market is mending, but would do a lot better if much-needed reforms were enacted, chief among them loosening lending standards by banks and mortgage lenders. Until that happens, expect a weak housing ...Ending Uncertainty is Prescription for Housing RecoveryMortgage News Dailyall 2 news articles »
  • Is the government backing a new housing bubble? - MSN Money
    Is the government backing a new housing bubble?MSN MoneyBut without qualified buyers, the housing market can't recover and play a part in the broader economic recovery. The Obama administration's answer to this Catch 22 is this government-backed FHA mortgage program, a plan aimed at adding buyers to a ...and more »
  • Investing in a potentially promising housing market - IndUS Business Journal
    IndUS Business JournalInvesting in a potentially promising housing marketIndUS Business JournalBy Raj Sharma In this piece, we will look at the state of the US housing market, and its outlook for the remainder of the year. A self-sustaining economic recovery is reliant on a recovery in housing, and Bank of America Merrill Lynch strategists ...and more »
When Will the U.S. Real Estate Market Recover

When Will the U.S. Real Estate Market Recover?

 

It is difficult if not impossible to tell how long the real estate market will be in the dumps. This article, however, will take a look at what caused the housing crisis and what lingering effects still remain. From there we will offer an opinion about how much longer the real estate market will be affected.

 

Fueling the buildup of the housing boom were sub-prime mortgage bonds created by Wall St. This was a huge money maker for those banks. They needed more and more loans to issue more and more bonds, and this motivated lenders to lower lending standards. They knew that Wall St. banks would purchase any loan they could write, even those to people who didn’t have jobs and couldn’t afford a mortgage. The feeling that home prices could only go higher was also behind the frenzy.

 

Although it was felt that risks were low with these bonds, there were so many loans made to people who couldn’t afford to pay them that the numbers of defaults were huge. This caused the bonds based on those mortgages to become worthless.

 

To get an idea about how many subprime loans were being made, in 2006 it has been reported that there were more than $600 billion worth of them. An assumption that the average mortgage was written for $200 thousand dollars would mean that in 2006 alone 3 million homes were purchased with subprime mortgages.

 

If one makes the assumption that these kinds of lending rates took place for four years, then 12 million homes were bought using subprime mortgage loans. If one fourth of that total went into foreclosure, then three million homes will be eventually be foreclosed upon for just that four year period. This might even be a conservative estimate because one million foreclosures occurred in 2010, and a bit more than that are anticipated in 2011. Banks are even holding back on some foreclosure paperwork in order to keep from inundating the market even more.

 

So it appears that the large backlog of foreclosures will continue to unravel for a least anther couple of years before it looks anything like normal. The foreclosure process is long, and this will add time, as will the time it takes to sell these homes and clear them from the market. A good guess, then, is that the real estate market, especially for new homes, will continue to struggle for another three or four years. New homes are having particular difficulty because they have trouble competing on price with low cost foreclosure properties.

 

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