There's this article from news.com.au today titled Million US home foreclosures forecast". Some of the stuffs it mentioned are quite scary:
"The woes of the US housing market are dragging on longer than expected, and may lead to over one million foreclosure notices this year for homeowners, US Treasury Secretary Henry Paulson said overnight."
"the problems in housing represent "the most significant current risk" to the US economy."
"Current trends suggest there will be just over one million foreclosure starts this year, of which 620,000 are subprime"
1 comment:
Alarming indeed, more so for us as we live there (here). To some degree this is a necessary correction as in some US markets the valuations of homes became ridiculously high.
I don't see how any rational observer of the US housing market could expect anything other than this to happen--people here were buying houses that were overvalued and beyond their economic means. Even worse, many people have been taking home equity loans on their overvalued homes...so if they want to sell they can't because when prices come down they owe more than they can sell their homes for.
Great blog. Your house looks great. Very informative too as we someday hope to build a (brick) home of our own.
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