2008 U.S. Forecast
The Anderson Center for Economic Research is predicting recession for 2008 in both California and the U.S.
” Much of the recent increase in consumer spending has been financed by households cashing out a portion of their home equity gains by refinancing their loans. But total home equity cashed out is estimated to decline by almost $60 billion in 2007.”
But that’s not all.
“We are projecting an additional decline of $130 billion in 2008. The resulting negative hit on consumer spending will be considerable, especially when it is coupled with the impact of higher energy costs on reducing spending.”
The full report should be a “must read” for anyone considering purchasing a home, either for use as a personal residence or as an investment property. The days of just buy it and you’ll make money are over, the fundamentals are critical now and you have to consider the very real prospect of losing value.
You can find the press release of the report here.
January 23rd, 2008 at 10:32 pm
Like the site…
As far as the forecast, it does not seem that the home foreclosure market is going to let up anytime soon, in fact it seems that they are going increase a lot this year.
Althought, foreclosures are up it will be intresting to see what happens with investors that are investing in these foreclosures
February 12th, 2008 at 9:59 am
With the rise of foreclosures, some dont realize that they have a alternate solution. I about lost my home after my husband lost his job.. A friend of mine told me about mortgagebuyerbasics and they helped me out of the jam. I reaffirmed on the past due balance and kept my home.. Too many people choose to ignore the mortgage company thinking that they have no other option in hopes the situation will go away. I am glad I didnt ignore it, it would have went away alright,, permanatly.
March 23rd, 2008 at 10:01 am
government foreclosure
One of the reasons that official unemployment rates never hit double- digits (as, by rights, they should have) is the number of unemployed people who have essentially given up. Occasionally, you’ ll hear someone say,“ Well, I would never do that. H…