It was this time last year that “the experts” were saying that the housing market was soon to stabilize and that by no means were we facing a crisis.   Well, they were wrong and the market continues to stumble and in some cases actually tumble.   Marketing times have increased dramatically from 2006 with other market forces such as increased unemployment, rising foreclosure rates, record consumer debt and higher energy prices all contributing to a poor climate.   To top things off, banks have instituted stricter lending standards which are only impacting this market in a negative way.   In summary, we have the “Perfect Storm” now happening. 

Good News ~ on the positive front is the fact that the inventory of new homes is slowly being absorbed and the number of housing starts have declined substantially.  Eventually, this should lead to a stabilization in the market. 

What’s to Come?  This appraiser predicts another year or so of market turbulance before we see a stablity in market prices.  Hopefully, the fall election will bring about some major change to this country ~  Change that impacts consumer markets in a positive way.