Almost 51% of real estate professionals recently surveyed anticipate the current crisis in the mortgage loan market to continue until 2011, according to a survey of real estate professionals. On the same survey, 17% said a recovery was possible in 2009, and 4.6% said they never expect the mortgage loan market to recover.
Additionally, 60% of those surveyed expect government efforts to stabilize the market to have either minimal or negative consequences.
ft observation: The respondents in the reported survey need more information to make a better judgment on the mortgage loan crisis. Home sales volume will not stabilize enough to produce a solid recovery until 2013, at the earliest, due to the availability of jobs. The market is unlikely to peak until approximately 2017, based on the economics of demographic demand and job gains. Remember: as go home sales, so goes mortgage lending.
The government does have several options available to improve the market, but more government regulation is needed to encourage loan cramdowns by lenders and bankruptcy courts if the rise in defaults is to be stopped. The government must clarify its involvement in the process for lenders foreclosing and clearing out the real estate owned property (REO) through normal brokerage channels. A government tax credit to encourage homes sales will primarily help builders and lenders clear out properties at higher than market prices. Not good news for buyers, but a source of hope for the survival of mortgage and loan brokers in the short term.
Re: “Secondary Markets Won’t Recover Until 2011, Insiders Say”, from housingwire.com
Permalink: http://www.housingwire.com/2009/02/02/secondary-markets-wont-recover-until-2011-insiders-say/
The Real Estate and Mortgage Markets will completely disappear by 2010 because people will realize that simple needs like security, warmth and shelter are highly overrated. If you don’t buy into that then let’s figure this out as REAL ESTATE PROFESSIONALS.
1. We let the stock market guys into our game – so what did we expect to have happen? These dice rollers found a way to “Buy-Finance-Flip-Invest in Stock”. Their “alchemy” of turning Real Property into Stock Certificates fizzled.
2. The sooner we get back to Mortgage Money which is backed up by “Dirt and Concrete” instead of derivitives and spreadsheets the sooner we will recover.
3. Forget the loan modifications – we should get behind Lender Purchase & Leaseback scenarios that will calm the foreclosure storm enough to allow industry leaders to breathe some confidence back into our country.
4. Politicians – STOP WITH doomsday rhetoric!
Hang in there. It’s gonna be okay sooner than later. This is America – AMERICA, get it?