Developments in financial markets in the second half of 2007 and early months of 2008 have undermined rather than contributed to recovery in the housing sector. Housing sector activity has been depressed by an additional 30 percent due to the credit market crisis.
Single family housing starts are down 63 percent from peak levels of production during the housing boom with some of the most troubled markets down 80 percent or more.
The toxic combination of lax lending standards and stagnant or declining house prices in many markets creates the potential for downward spirals with resetting mortgage terms and declining prices forcing foreclosures that depress prices further forcing additional foreclosures.
The most troubled markets are in Florida and California, and include Las Vegas and Phoenix, AZ, but the twin problems of inflated house prices and questionable mortgage lending are not isolated.
Housing markets across the country will experience another difficult year in 2008 before recovering in 2009. Recovery will be uneven with some of the most troubled markets declining through 2009.
Markets in the Northeast and South, with the notable exception of Florida, will recover ahead of markets in the Midwest. The industrial states are at greater risk of continued weakness than the farm belt, and the Western markets in Las Vegas, Phoenix and California will be the slowest to recover.
That's why the Home Seller Assist program is catching on like wild fire. Created by John Alexander this no bank qualifying allows people with problem credit to purchase homes and agents, builders, investors, loan officers and sellers around the nation are using this new funding to quickly move properties. They will even pay you a 1% commission for every buyer you bring to them that obtains a loan that funds!
John Alexander presents a live webcast each Tues and Wed evening at www.fastsellerloans.com, so make sure you attend the next one. The times are on the website, hope to see you there.
Larry Potter, Pres.
KIM-LAR, INC.
847-872-4047
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