Housing Market Woahs: loandudefromsac

Many people have been saying that there is a bubble in the housing market. If there is I think we are very close to the pop. Primarily due to supply and demand.

2.4 million foreclosure on the horizon =more supply
This may cause the ball to just start rolling, with many borrower with over 80% financing, they may be stuck due to depreciation in there house, and be forced to foreclose or stay. = more supply

new home builders still building= more supply

lenders going out of business and guideline changes for getting a loan has change so significantly, 10-25% of those that could buy, now can't= less demand

Interest rates should move


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up soon. They have been the lowest they ever have been for four years, Greenspan has received some blame for making them too low, a new president means new economic policy. Higher rates less people can afford= less demand

Even if rates do not go up, profit margins will be increased by lenders, due to buy backs and correcting themselves from the recent loan free for all = less demand.

www.lenderimplode.com
These factors add up to a possible scary scenario. Hope this does not mean anything. Must See graph http://www.speculativebubble.com/images/homevalues1.gif />

Note: -Loan Officer/ REALTOR in Sacramento CA.

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Housing Market Woahs

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