The U.S. mortgage melt down has produced America's real estate crisis with falling home prices and record foreclosures, and it now threatens to produce the Nation's worst economic disaster in history, according to a new report by Housing Predictor.
The real estate markets rocked for years with double digit appreciation or near double digit appreciation in many areas of the country only to come slamming down. Some markets have dropped as much as 40% from their record highs.
The crisis has worsened amid souring buyer sentiment, fearing prices will fall further. More than half of the nation's housing markets regularly monitored by Housing Predictor have sales levels that are the lowest in more than two decades.
Prices of many homes are falling at faster rates than at the peak of the U.S. Savings and Loan Fraud scandal in the early 1990's.
The real estate crisis is beginning to broaden, moving into markets that have not yet felt the impact. But there are exceptions to the slow down, which are included in the Housing Predictor forecasts. Ten state's markets remain strong enough to be considered as overall appreciating by Housing Predictor analysts.
Housing Predictor forecasts more than 250 local housing markets futures in all 50 states and provides thorough analysis on the fall out from the mortgage crisis.
California, Florida, Michigan and Nevada are the most severely impacted states. But the majority of states now have falling housing prices in most markets.
Adding to the problem is a new estimate that now paints a disturbing picture of just how massive the growing crisis has become. An estimated more than 5 million adjustable rate mortgages are set to be readjusted before the end of 2009, and many homeowners are expected to be unable to make the higher payments required to keep their homes.
The problem started in the subprime mortgage markets and has now spread into conventional mortgages, most of which were new creative financing provided by mortgage companies in order to make the loans or required little qualification to obtain.
Mike Colpitts is the Editor of Housing Predictor, which forecasts more than 250 local housing markets in all 50 U.S. states. Search foreclosures and get the latest on the housing markets all over America at http://www.housingpredictor.com
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