Ask A New Jersey Closing Expert

The data shows the housing forecast by the National Association of Homebuilder. The total housing starts are expected to increase in 2009 which is a leading indicator showing that this may be the bottom year of the housing decline. If these forecasts are accurate, there should be a rebound in the housing market with increasing buying and selling activity which will eventually lead to an increase in housing value over the course of the last Quarter of 2009 into 2010. But these are all forecasts, what will really happen is a matter of watching and seeing.

 Ankit Duggal; www.qualitycloser.com

Reference:

The housing crisis is far from being over. Looking over the Economist this past weekend it was visible that the data/ maps used by Mr. Bernanke only seemed to encompass houses financed by mortgages backed by the government-sponsored giants, Fannie Mae and Freddie Mac. But by excluding subprime and jumbo loans, the maps/data has left out the top and bottom of the market—where prices rose fastest during the bubble and where the mortgage mess was most severe.

In my opinion, we seem to be in middle of a housing crising mess.

 Resource:

The Economist, May8, 2008

Home prices declined by 12.7% in the month of February. The market is taking a sharp decline as seen by the market chart above which maps the housing price trends from Jan 2000 to Feb 2008. The leading indicators are still not positive as the housing starts are down, the constructions permits are still not increasing and the new home sales are taking a sharp decline . All these indicators show that there is still weakness in the housing market which will equal to further declines in the housing prices.

 Your friend,

Ankit Duggal

www.qualitycloser.com

References:

“Home Prices Fall 12.7 Percent”, The Big Picture Blog

 http://bigpicture.typepad.com/comments/real_estate_/index.html