How bad is the real estate market? The downturn is only just beginning.
Tax credits have ended. We are going to see some good numbers in may and perhaps June due to the flurry of activity created by people trying to get homes bought before the credits expired. By July expect huge drop offs. Other points of interest:
- 70% of all loan mods are expected to default in 12 months, adding to the shadow inventory
- Foreclosures hit another record in May and are still rising
- According to National Association of Realtors, 60% of all home buyers in April put down 6% or less and only 14% put down 20%.
- Half of all buyers were first time buyers (demand stimulated by tax credits
- Prices must drop to get market moving
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