When it comes to predicting the state of the economy and the real estate market its like looking at a glass of water.

Is it half full or half empty?

Neither.

We are no where near a recovery nor are we at the bottom.

STOCK MARKET:

In the short run the stock market will get better before housing .

People  who have lost a lot of personal wealth are anxious to make up some of that loss.

With low interest rates on CD’s, Treasuries, The Stock market appears to be half full.

REAL ESTATE

Real Estate is another story. Real estate in general lags behind other markets and with unemployment data at 10% nationally I think the Real Estate Market glass is half empty.

I predict we will see more foreclosures as more people are going to be unable to modify their loans or pay their mortgage while unemployed.

I think home prices will continue to decline because of the increase in foreclosures.

I think there will be fewer home buyers due to tighter credit,  or if the First time Home buyer credit is not renewed or  if FHA runs out of money.

According to the Home Builders Association there will be fewer new homes being built due to lack of credit and financing.

I would love to hear your comments….