Where Home Prices Are Falling Dramatically

December 14, 2010 at 8:01 pm Leave a comment

The rising tide of Foreclosures and mortgage delinquencies affecting the market are depressing home prices at a more rapid pace than previously predicted.

The net effect will be more homeowners underwater, which will lead to more foreclosures, which will lead to even lower prices…which places the battered housing market on a round-a-bout with essentially no exit.

There will come a point in which DRASTIC measures will be the only solution to clearing inventory. Whether that will be practically giving homes away, say selling them for pennies on the dollar, or wiping out existing mortgages and restructuring them to fit a homeowners current income (DTI).

Or perhaps even creating habitats for homeless, terminally ill patients, special needs individuals, Etc. But something very drastic will need be done in order to stem the vicious cycle of exponential price and sales decline.

With rising unemployment and the continuing loss of purchasing power, less and less would-be buyers will be able to purchase a home. Therefore, the existing, foreclosed and shadow inventories will keep piling up- numbering close to 15 million units by 2012, if swift and meaningful action is not taken.

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Entry filed under: Assets, basking ridge, Basking Ridge Real Estate, Basking-Ridge-Real-Estate, Bedminster Real Estate, bernardsville, Bernardsville Real Estate, Central Jersey, Central NJ, Commercial Real Estate, economics, Exit 24/7 Realty, far hills, FHA, Foreclosures, hills of somerset, I-78 Corridor, Investment property, Investments, labor, mls, Morris County, Mortgage, Multi-Family, New Jersey, nj business, nj homes for sale, NJ real estate, North Jersey, property, Property Taxes, real estate, real estate market, Real Estate News, Realtors, REO's, Short Sales, Somerset County, somerset county real estate, somerset hills, The Garden State, Union County, warren twp, Watchung Boro, watchung real estate. Tags: , , , , , , , , , , , , , , , , .

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