97% of US Housing Market to Deline in Value
The Private Mortgage Insurance Company (PMI) released its winter 2009 Economic and Real Estate Trends report which includes a risk index of where property values are heading. The index currently predicts that in 97% of 381 U.S. market areas prices will be lower by 2011. We agree. The economic and housing decline is happening in two phases. The first phase was mass foreclosures due to sub-prime mortgages. The second phase currently under way is mass foreclosures due to the severe recession caused by phase one. We do not subscribe to the forecast that economy will be turning around by summer 2009.
If you are going to sell, sell now.
If you are going to buy, be cautious.