Sabbatical on Postings.

I have been posting to this blog for 2 solid years, and 3 prior years to the Article Manager at www.1stMortgages.com. In that time, I have been able to share and advise a great number of people on the chaotic mortgage market. It has been quite a ride.

But, it is now time for me to take a seasonal leave of absence. For the past 3 1/2years, I have been the Managing Director and Chief Learning Officer for Lengthen Your Stride! LLC. In this position, I develop and manage a huge curriculum of educational material. MY efforts with them have provided little time to research and report on the ongoing changes in the real estate and mortgage markets.

Due to these time constraints, I am using this final post as a 'farewell' wave. I have not abandoned this blog, but for now will take a sabbatical on posting.

House Prices Could Fall by 30%

Housing markets from Punta Gorda, Florida, to Stockton, California, will crash and suffer price drops of more than 30 percent before the housing crisis is over, a report from Moody's Economy.com said on Thursday.

On a national level, the housing market recession will continue through early 2009, said the report, co-authored by Mark Zandi, chief economist, and Celia Chen, director of housing economics.

The report paints a worsening picture of the hard-hit housing sector, which is in the midst of its worst downturn since World War II.

While activity will stabilize in 2009, it will not be until 2010 before a measurable improvement in sales, construction and pricing will emerge, the report said.

House prices are forecast to fall 13 percent from their peak through early 2009. After accounting for incentives home sellers are offering buyers, effective declines peak-to-trough will total well over 15 percent, the report said.

Punta Gorda, Florida, and Stockton, California, are the hardest hit markets in the U.S., with price declines from peak-to-trough forecast at 35.3 percent and 31.6 percent, respectively.

"This is the most severe housing recession since the post-World War II period," Zandi told Reuters.

These markets have been hard hit due to several reasons, namely the exiting of investors from the areas, a fair amount of subprime mortgage loans causing an increase in foreclosures and overbuilding by home builders, Zandi told Reuters.

Home sales, however, should hit a bottom in early 2008, which will mark a 40 percent drop from peak-to-trough.

http://biz.yahoo.com/rb/071206/usa_economy_housing.html?.v=3

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