Zombie Subdivisions Left To Crumble?

Every market is different, but in general, the odds of a huge nation-wide rebound in home prices is slim given that backdrop. Housing prices will likely remain depressed for several more years at least. In "real terms" I expect prices will decline for another decade.
A friend recently sent me an article entitled "Zombie Subdivisions Left To Crumble" a very good read.
What are the fundamental factors affecting housing right now?

asked by Patricio in Renting & Real Estate | 4602 views | 09-30-2009 at 07:42 PM

Fundamental Factors Affecting Housing

* Tougher lending standards: no more liar loans, bigger down payments, closer look at incomes, etc.
* Tougher appraisal standards
* The difficulty of finding jobs
* Wage and benefit cuts shrinks affordability for those who do have a job
* Huge bank-owned shadow inventories
* Huge developer shadow inventories, especially in condos
* Consumer willingness to "walk away"
* Rising delinquencies and foreclosures due to rising unemployment
* Rising taxes
* Overleveraged consumers
* Pent-up demand to sell in a "please get me out mentality" if prices rise just a bit
* The upcoming boomer retirement downsizing event
* A change in consumer attitudes regarding housing as an investment
* A new frugality in consumer attitudes towards debt in general

answered by Bill | 09-30-2009 at 07:44 PM

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