will the real estate market recover in 2008?

Answer 1

No. As I predicted 5-6 months age when this all started the subprime market was and is just the start, it is now not only affecting the Alt-A market but the prime as in 15% of the prime market is now on the brink of foreclosure. The housing bubble is only beginning to burst. The feds are pumping in money to keep everything liquid but that does not change the fact that housing for sale is saturating the market and buyers are becoming scarce because of the tightening of credit. Double digit artificial inflation on housing prices, doubling of energy prices and wages stagnant has caused this to happen. Without credit everything halts, and without investors there is no credit. My belief and it has been for at least 6 months that if there is not a drastic change I think we have a 65% chance of hitting a recession within the next 8 months. I also believe the Fed will lower interest rates within the next 30 days risking inflation, but do not believe that will help stem the tide of what is happening, and that is a housing correction.

Answer 2

The market will not recover, not until probably the end of 2009 or even 2010. The real estate market collapse has been a long time coming - everybody was profiting from the business boom, so even though most companies had underwriting guidelines and policies ( which supposedly lessened risk ) in place, the lender mentality became "let's make it work, no matter how", which is how we got into this mess. As an mortgage underwriter, I have seen borrowers with a 550 credit score obtain 100% financing, on a stated income or no doc loan. If an automated system approved the deal, it was a done deal, likewise if I declined it - somebody higher up would overturn my decision, and approve the loan. That mentality, and the preponderance of mortgage loans with the potential for negative amortization (the so called Option ARMS) or with an initial period of interest only, allowed many people who would not have otherwise qualified for a mortgage to obtain one. I've been saying for the past 10 years that it was a matter of time; and it's finally happened. The market decline will continue, as lenders and the investors buying the loans they generate tighten their guidelines, and borrowers continue to default on mortgage loans they never really qualified for. Only a select few, with decent credit, verified income, and a downpayment, will qualify, which means more builders out of business, and more massive layoffs in any of the industries that feed off the lender business (title companies, surveyors, appraisers). When the market does recover, it will be to the level that it was back in the early eighties, when I first got into the business and mortgage rates were 21%.

Answer 3

Yes this whole sub-prime mess will be done by the END of 08

Look at the mortgage resets for the subprime mortgage market next year.

Aug (07) 52 Billion Dollars
Sep 58
Oct 55
Nov 52
Dec 58
Jan (08) 80
Feb 88
Mar 110!!! WOW
Apr 92
May 72
June 75
July 50

Answer 4

I do not believe the market will recover in 2008. Almost every month now another big lender closes it doors because of its inability to pay off its investors. Lending guidelines are tightening which makes it harder for those facing increases in mortgage payments to refinance.

We have just touched the iceberg of the mortgage meltdown.

Answer 5

There is no way to correctly answer this question because so many factors control the real estate market and it can not always be predicted accurately.

Answer 6

We are in a Buyer's Market and will remain in this market for the next few years. Prices are still adjusting down, and the bottom is not in sight yet.

Answer 7

I really hope so, however the values are still decreasing big time. It was only from 2003 - 2005 when my house had $200k increase, it's now almost down to when I first purchased it.

Answer 8

I hope so! I've been on the marker for eight months!!! I heard it will get better in 08.