Even though many articles have emphasized the recovery of the US housing market, the reality is a blow to many of the home owners. There are only a few people who have a pessimistic attitude regarding the current market conditions and the economists confirm with these individuals’ views. They highlight the myths among the optimistic people and explain the facts. Stan Humphries, the chief economist of Zillow.com gives the following explanation. This may come as good news however, as another bust leads to lower prices of things like Charlotte NC investment property.
1. The recession is deemed to have ended but the reality is that the worst is yet to come only by 2010 in its third quarter. The lowest of the recession is expected to hit by that period.
2. After the recession’s lowest or trough is reached, it is optimistically expected to improve and reach the previous peak, but again the boom is not expected to occur by the economists anywhere in the immediate future. They trust that the first phase of recession will come to an end when the lowest is hit and the second phase will start, which may last for longer. However, it’s only best to be aware of this that the second phase will stay flat.
3. Foreclosures are expected to drop significantly or at least at a good pace, but the peak in the mounting foreclosures has not yet occurred and is expected to occur by 2010 end (again freeing up perfect properties for rental in Charlotte or wherever). This situation will remain as such before it will start decreasing. Rick Sharga, another economist expects this situation to be stable until 2011 end.
4. Tax credits had been believed to be a boon to the housing market, but they truly have not changed anything, since the buyers would have bought irrespective of the announcement, and since the purchasers were more interested in low interest rates and low prices.
Thus some economists have put their views on the table, though nearly 93% of the home owners are optimistic regarding the market. However, the economists seem to win over with their facts, since they better evaluate and represent the housing market conditions. Unemployment levels have a major impact here. Therefore the housing market may be set to burst.
Tags: 2010 housing market predictions, another housing market slump, charlotte nc property investing, economist housing market concerns