Money Magazine reports today that “the worst in housing is yet to come” in 2008. Fiserv Lending Solutions predicts a decline of 5.7% next year which would make it the worst year for real estate in 40 years.
Patrick Newport of Global Insight, an economic forecasting firm, predicts double digit percentage declines for Florida because of the excess supply from over building.
The article sites the supply of homes on the market as being far too high and no where near enough demand to absorb the excesses as cause for the declining real estate market in 2008. A recovery is not expected until at least 2009.
The bottom line is that recovery in the real estate market will not occur until the excess supply of homes gets burned off. The current supply level sits at around 4 million properties on the market which is double the number of 3 years ago. The outlook doesn’t seem to have a recovery any time in the near future. Wow.
Some recent posts that may be of interest: