Wenny posted a condolence
Tuesday, November 27, 2012
SuttmeierSince the recovery in house picres began last summer, homeowners and real-estate agents have embraced what many believe is a return to normalcy (forever rising picres). In Wall Street-fueled markets like New York City, properties are once again getting multiple bids, and optimists are chattering about a quick return to old highs. If the trend continues, friends, neighbors, and real-estate agents will no doubt soon start repeating the adage that helped inflate the housing bubble in the first place: Real-estate is always a great investment.But the trend won't continue, says Richard Suttmeier, strategist at ValuEngine.com. The temporary increase in picres has been driven by government efforts to prop up the housing market, Suttmeier says, and those measures have come to an end. A new wave of foreclosures is hitting the market. Fannie Mae and Freddie Mac have become black holes into which taxpayers must shovel endless billions just to keep the mortgage engine running. Most importantly, as measured by the Case-Shiller index, housing picres are still way too high. In most major house-price indexes, picres have already begun to roll over and head back down. Suttmeier thinks this trend will continue. In fact, he thinks picres could fall another 25% nationwide.
