Do you know about - San Diego Real Estate 2010 Forecast - The Year of the Strategic Mortgage Default
Arizona Unemployment! Again, for I know. Ready to share new things that are useful. You and your friends.San Diego's real estate shop will most likely have someone else down-turn in the year 2010, and there are many reasons why. Remember, many of the adjustable home loans were designed with five and seven year interest adjustments. Many home loans are set to re-set next year since the San Diego real estate shop boomed in the summer of 2005. The rescue grace is that interest rates are near all-time lows and interest rate shock will not be a major factor. The downbeat with these mortgage adjustments will be the 'reality check' factor. How many homeowners will suddenly wake up to the fact that their home is now worth tens of thousands of dollars less than their mortgage balance? Only the naive will believe that their San Diego home's value will snap back soon.
What I said. It isn't outcome that the true about Arizona Unemployment. You check this out article for facts about a person want to know is Arizona Unemployment.How is San Diego Real Estate 2010 Forecast - The Year of the Strategic Mortgage Default
The Northwestern University of Chicago has found that as many as one in four defaults may have been strategic. Driving this phenomenon is the rising estimate of households that are deeply "under water," owing much more than the current value of their homes. First American CoreLogic, a real-estate facts company, estimates that 5.3 million U.S. Households have mortgage balances at least 20% higher than their homes' value, and 2.2 million of those households are at least 50% under water. The question is worst in Arizona, California, Florida, Michigan and Nevada.
So, either or not you think the San Diego real estate shop has bottomed, the reality is, it will take numerous years to recoup equity losses many have endured. 2010 may go down as the year of the strategic mortgage default because of this homeowner awakening.
Talking-heads who claim the U.S. Housing shop has "bottomed," or even that it will "bottom" in 2010, don't have the slightest grasp of underlying economics. Government and the vast majority of media are using the old tactic of trying to talk us out of this downturn. Any bit of definite new is over-emphasized while the terrible, realistic conditions are hardly noted.
The government has spent trillions of dollars and has not made ca vital impact on the problem. Government saved Wall street banks, at least for now. Will government platitudes nothing else but turn around our economy? The management thinks so. They are windup their eyes and wishing really, nothing else but hard that it does. They also should remember to click their ruby-red heels three times to insure success.
The best parallel to our current situation continues to be the Great Depression. In 1930, we had a 50% stock rally and abundant "green shoots" before the shop turned down in a relentless decline. This time the government intervention is much larger, but so too, is the credit bubble.
Many agree the real unemployment rate is 17.5%. How can the housing shop enhance until unemployment dramatically improves?
Property values only go up if there is an growth in demand. That is Not happening. The birth rate of the Us is just adequate to sustain our population, nothing more, and it would be negative without immigration.
Another major factor affecting San Diego real estate demand, is that the severity of our current home value decline seems to have broken the back of the myth that you could not lose money purchasing residential asset in San Diego or California. Until the devastation to San Diego home values, fades from the group consciousness, examine for housing will be a fraction of what it was.
Those who spend in real estate and expect values to appreciate need to face the fact that by mid-2010 there is a high probability we will be in a rising interest rate environment, which will boost costs on mortgage loans substantially. We all know it is now much more difficult to qualify for a mortgage even with some of the bottom interest rates in history. What will happen when interest rates move up? Will the government again step in with some type of subsidized interest rate/qualifying program (much like the sub-prime debacle)?
My idea to stabilize the real estate shop is for the government to grant investors who buy and hold homes for at least three years, but no more than seven years, 100% exemption on any capital gain they may realize. I published this idea back on 10-1-08, but, possibly because this was a low cost idea entertaining 'investors' it never gained any traction. I still believe it would be a sure-fire fix to our housing doldrums.
Here in California the largest state tax rate just passed; there is talk of additional state tax increases. That, coupled with our already high electric, water and gasoline taxes, portends California homeowners' disposal wage is headed for oblivion! additional aggregate with the administration's new condition care costs and Cap & Trade's dramatic impact on utility costs, only the hope & change commissars will be able to afford California detached homes. The California masses will be, out of necessity, forced to live in huge apartment complexes. The California approved of living will take a huge hit, but look on the entertaining side... Mass apartment complexes will reduce commuting, consist of urban sprawl and cut down on carbon emissions! Perhaps, most importantly, the extra taxes will insure the California group workers pension plans will continue to provide lottery-sized benefits into the foreseeable future.
Higher rates to sustain currencies will intensify deflation. Intensifying levels of bankruptcy and foreclosure due to wage decreases and job loss will intensify deflation. A century of inflation is coming unwound in a decade.
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