Greenspan predicts housing bottom in 2009
In an article in the Wall Street Journal Alan Greenspan, the Former head of the Federal Reserve, suggested that he thinks that home values in the United States will come to a point of stability early next year.
(EMAILWIRE.COM, August 14, 2008 ) NEW YORK – In an article in the Wall Street Journal Alan Greenspan, the Former head of the Federal Reserve, suggested that he thinks that home values in the United States will come to a point of stability early next year.
The Journal’s website reported that Greenspan said, "Home prices in the U.S. are likely to start to stabilize or touch bottom sometime in the first half of 2009." Mr. Greenspan did note that he thought prices might continue to drift lower after that point in time.
Many other real estate industry watchers are not quite as optimistic as Mr. Greenspan. Foreclosure expert Patrick McGilvray, president of www.TheHomeBuyingCenter.com, commented, “Greenspan’s suggestion to admit more skilled immigrants is a great suggestion as more intelligent and educated people in our country is a good thing for our economic system. But, Mr. Greenspan is underestimating the challenges our nation faces when we truly consider how many adjustable rate mortgages for Alt-A and even Prime borrowers will reset in the coming years.”
McGilvray pointed out that many leading banks are reporting disturbingly high levels of default among Prime borrowers and that many adjustable rate mortgages made during the peak boom years of 2004 and 2005 were scheduled to reset to higher adjustable payments in five years.
The Journal’s website reported that Greenspan said, "Home prices in the U.S. are likely to start to stabilize or touch bottom sometime in the first half of 2009." Mr. Greenspan did note that he thought prices might continue to drift lower after that point in time.
Many other real estate industry watchers are not quite as optimistic as Mr. Greenspan. Foreclosure expert Patrick McGilvray, president of www.TheHomeBuyingCenter.com, commented, “Greenspan’s suggestion to admit more skilled immigrants is a great suggestion as more intelligent and educated people in our country is a good thing for our economic system. But, Mr. Greenspan is underestimating the challenges our nation faces when we truly consider how many adjustable rate mortgages for Alt-A and even Prime borrowers will reset in the coming years.”
McGilvray pointed out that many leading banks are reporting disturbingly high levels of default among Prime borrowers and that many adjustable rate mortgages made during the peak boom years of 2004 and 2005 were scheduled to reset to higher adjustable payments in five years.
Press Release Keywords:
US Housing, real estate, foreclosure expert, we buy houses, sell house fast, adjustable rate mortage, mortgage loan defaults,
US Housing, real estate, foreclosure expert, we buy houses, sell house fast, adjustable rate mortage, mortgage loan defaults,
 |