Moody’s Investors Service predicts another 8% decline in the housing market in many areas over the coming months. They blame the anemic Home Affordable Modification Program (HAMP) for failing to put a damper on foreclosure and the continuing escalation of foreclosure sales throughout the country for the continuing slide in home prices.
The national home price drop from peak to trough is expected to be 34%. The one bit of good news is Moody’s revised downward the expected total value decline. Previously Moody’s had predicted a 37% total decline. The bad news is, instead of the trough being reached in the 3rd quarter of this year, Moody’s now does not expect to see the leveling out to impact the market nationally until the end of the 4th quarter 2010.
Moody’s analysis shows that only 400,000 to 1 million homes might be saved through HAMP. The rest of the job of cleaning up the housing market will be left to the slow process of foreclosure, deed-in-lieu of foreclosure agreements and, of course, short sales.
Dave Rosenmarkle
Broker/Owner
Highland Realty
Arlington, VA 22207
703-538-2566
davidrose@mris.com
www.HighlandAgents.com
Comments(4)