Industry experts are predicting that the housing market will stay depressed until 2014. Increasing mortgage rates, high number of foreclosures and so many available but distressed properties are the primary contributors to our difficult current state of affairs. Rich Sharga of RealtyTrac (foreclosure and real estate market tracking provider) expects more than 3 million homeowners to receive foreclosure notices – and this is just during 2010. These are record highs.
Although tough news for real estate overall, the silver lining may be for the rental market.
Pete Flint, Trulia.com CEO said “Nationally, prices will decline between 5 percent and 7 percent, with most of the decline occurring in the first half of next year.” These two firms recently released their survey findings about the consumer view on the housing market. 48% of the respondents said that if they were underwater on their home loans they would consider simply walking away from their homes – this would be even more devastating to the market. 1 in 5 consumers expect the recovery to last a few mores years, until 2015 (according to the survey conducted Nov 2010 by Harris Interactive).
The more hopeful respondents (the majority) are expecting to see the recovery in 2012 or 2013. Those considering buying a home said they’ll wait another 2-3 years.