Negative market statistics, such as record high foreclosure rates, climbing mortgage rates and an abundance of distressed properties adds up to a weak forecast for the housing industry. Rick Sharga, of RealtyTrac, believes more than three million homeowners will receive a foreclosure notice by the end of 2010. "We won't see a full market recovery until 2014," he said.
Another housing market expert, Pete Flint, chief executive of Trulia, says, the mortgage rates will start to jump in 2011, creating a problem for homebuyers who were planning on moving into a reasonably priced home and feeding more home price drops. "Prices will decline between 5 percent and 7 percent," he commented. "With most of the decline occurring in the first half of next year."
Additionally, he added that interest rates on 30-year fixed loans may reach 5 percent, a rate that he says will add $120 per month to the average $400,000 mortgage loan.
The negative housing market forecast may be accurate, as Zillow.com shows the median price for homes in America is $179,900, a 4.3 percent decrease from last year.
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