What's up with real estate in 2010?

What's up with real estate in 2010?

According to Michael J. Malpede, of Easy Forex, the rebound in US housing market is another potential positive for the outlook for the US economy. The US housing market has improved and shows sign of stabilization. The housing market will benefit because the inventory of new homes are at their lowest level in 17 years, but the outlook for housing remains uncertain. A number of analysts suggest that the housing market remains weak and that the recovery was driven by foreclosures and short sales. The Fed announced plans to add additional support to government mortgage agencies (Fannie Mae, Ginnie Mae, and Freddie Mac) and the tax credit for first time home buyers has been extended to April 2010. This could keep the recovery in US housing market going during the first half of 2010, but it's uncertain what happens to the housing market when the Fed stops buying mortgage-backed securities next year. Still-rising mortgage delinquencies signal more foreclosures. "Delinquencies are a precursor to foreclosures," said Cameron Findlay, chief economist at LendingTree.com, in an interview Tuesday. "We're not seeing any decreases in delinquencies, which is very concerning."

More people are falling behind on their monthly payments during the recession as unemployment hovers around 10%, and this figure isn't expect to do any wild dips in the immediate future. Earlier this week, Fannie Mae (FNM) said serious delinquency rates in its conventional single-family-home mortgage portfolio rose to 4.98% in October from 4.72% the previous month. A year ago, the rate stood at 1.89%. A wave of foreclosures would only add to the inventory overhang of unsold homes and delay a lasting recovery in residential real estate. In spite of all this, Moody's Investors Service upgraded its outlook on the U.S. home-building industry to stable from negative. It cited strengthening indicators like housing starts, sales, and improving home affordability. "The industry's recovery remains precarious, however, given the sizable number of potential foreclosed homes that might eventually come to market, as well as the anticipated continued decline in home prices in 2010," Moody
's said. "The U.S. government's support for the sector is a critical source of strength. A premature removal of government backing would put the industry's outlook at considerable risk of returning to negative."

visit www.jdspropertiesmemphis.com for great wholesale deals