St Louis Mortgage and Real Estate News –
St Louis Finance News: Economists Predict Shadow or Foreclosure Inventory Will Keep Housing Market In The Toilet [News Hot Line: 877-334-0210]
Economists, with gloomy views on the real estate market feel that continued foreclosures and an “overhang” or “shadow” in housing inventory will likely prolong the mortgage slump for several more years.
Stan Humphries, chief economist for Zillow commented that home values are still declining at a very fast rate.
St Louis mortgage experts are also saying that any type of housing demand may not be seen or reach any normality or balance until the year 2013 according to Doug Duncan, chief economist for Fannie Mae.
The “overhang or shadow supply” of housing inventory is directly related to the standstill recovery for the housing industry.
Zillow goes on to predict that home prices may bottom out during the third quarter of 2010.
Once again, Humphries stated that the “tremendous amount of shadow inventory is a contributor to the stalled mortgage and economic recovery.”
This shadow inventory not only includes properties that are currently in foreclosure, but those in foreclosure that are not yet on the market and homes that are seriously delinquent and not yet in foreclosure.
Other negative side effects that continue to slow this economy includes mortgages losing their values and being “underwater” combined with high unemployment.
And as far as the federal tax credit programs being offered to first-time and existing home buyers that expired on April 30th of this year apparently did nothing in regards to driving sales.
Real estate agents and mortgage analysts have been warning us that July and August are the months we should be watching out for. We shall see.
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Tags: foreclosures, loans, shadow inventory, St Louis commercial lending, st louis finance, st louis home loan, st louis home mortgage, st louis lending, st louis mortgage, st louis mortgage broker, st louis mortgage news, st louis refinancing, underwater
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