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We’ve spoken in-depth, ad nauseam about the troubles in housing… for good reason. Despite what talking heads would have you believe, we’re not nearing a bottom. And I will not sit here and sugarcoat the truth. The cold hard truth is things will get a lot worse before we see any marked improvement.
Case in point, the National Association of Realtors just reported that sales will be lower than previously forecast thanks to tighter lending standards, and the massive breakdown in sub-prime loans. It’s so bad that existing home sales are projected to slip some 2.9% this year to 6.29 million from 6.48 million. That’s worse than previous estimates for a 2.2% drop.
That’s in addition to projections for new home sales to plummet 17.7% to 864,000 from 1.05 million last year. Plus, the median price for existing homes is expected to fall a percentage point to $219.800.
And it’s only going to get worse, my friends. That’s the honest truth.
Just how bad? Ask former housing bull cheerleader David Lereah. Before heading for the exit, he finally admitted, (as quoted by the Chicago Tribune), “We’re in a real estate recession. I’m projecting the first [nationwide] price drop since the Great Depression. We’re going to have negative home prices in 2007.”
For that to come from the mouth of oftentimes “housing-bubbly” David Lereah, you know we’re in for a world of hurt.
