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Why The US Housing Market Will Remain Under Pressure

February 17, 2010
By

I have maintained and continue to maintain that unless and until we see a measurable decline in mortgage delinquencies, we will not truly experience a measurable turn in the tide for housing overall.

In this same vein, new studies project that measures taken to aid delinquent borrowers and to stem the tide of foreclosures are nothing more than fingers in the dike. These measures are merely temporarily holding back a new and eventual wave of foreclosures.

The Wall Street Journal highlights these new studies Tuesday morning in writing, Foreclosures Seen Still Hitting Prices:

[HOUSING]

More waves of foreclosures will keep downward pressure on home prices in parts of the U.S. over the next several years, two new studies project.

The studies-by John Burns Real Estate Consulting Inc. and Standard & Poor’s Financial Services LLC-both conclude that most efforts to modify loans with easier terms will delay, not prevent, the loss of homes to foreclosure.

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