Tsunami Coming For Housing Crisis

According to Yale economic scholar Schiller, the mortgage crisis is only in the 1st innning.  A typical housing crisis lasts 8 to 10 years. 

When adjustable rate mortgages reset in 2009, the second innning begins.  Schiller believes the housing crisis will continue for many years ahead.  According to the data, mortgage resets on subprime loans will accelerate in 2009 all the way into 2012; many are calling this the mortgage reset tsunami.

The speaker panel talks through the acceleration of downward pressure on home pricing and how it is making it more affordable for the buyers in the market to step in and purchase a home.  However, the problem now is fear.  Many buyers are hesitant on stepping in because they have no idea where the bottom is.

While there will be short term problems in the housing market, the panel did suggest that over the long run, housing prices will start to firm up as the demand will start to increase as the population does.

A decline in volume and price impacts the economy in two ways; first a loss in construction jobs and second a drop in consumption due to falling prices. 
Tim Ord
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Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

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