Shocking information from Pew Center shows that 3% of homes will face foreclosure in the next three years. It’s far worse in some states like California which is projected to have 1 in 20 or 5% of all homes turn into foreclosures. No, doubt the dream of home ownership has been shattered by recent economic twists and turns.
What about those that don’t go into foreclosure?
Plummeting real estate values will dominate the landscape as more and more homes are seized by banks and liquidated at far lower values. Neighborhoods likely will deteriorate. “Wealth” will be destroyed. If PEW is right, it looks like those on CNBC who predict we’re at a bottom are very wrong
The credit crisis started in housing and will continue to expand as housing values continue to deteriorate. Until we reach a floor in real estate values, how can we not see continued erosion of the credit markets?
I think the cycle of pain is just getting started.