A Housing Bubble in the making

Housing prices have not reeled under such a blow since the Second World War. Expectations are high and a new housing bubble is in the making. But industry analysts are guarded, deflating hopes of double-digit appreciation. Instead they predict an unsteady, tortoise-like rise. The Fed has been mopping up mortgage notes so far, which is likely to end soon. In an effort to woo homebuyers back into the market, the Board of Governors is keeping interest at or around zero percent.

The embryonic housing bubble is nurtured by the Fed’s goal to resuscitate the housing market and stimulate economic recovery. However, little has been done for real estate speculators and investors, entrapped in the foreclosure vortex. A record inventory of foreclosures will be on offer, as soon as the banks raise the mortgage floodgates. Property prices in the major part of the country are expected to see a further decline if the government does not take firm measures with bankers, to work with homeowners facing foreclosure.

Forecast for the Bay Area

Housing markets in some parts of California appear to be poised for a turnaround. The turnaround is likely to take place at snails pace in the Bay Area where large numbers of sub-prime and adjustable rate mortgages were transacted.

Dale Warfel is a Bay Area realtor backed by 13 years experience. He knows the territory and is on top of fluctuations in real estate prices. He has been of invaluable assistance to homeowners in effecting short sales to avoid foreclosure. Dale has a listing of foreclosures for investors and homeowners looking for a bargain. To contact him, call 408.624.6202. For more on Bay Area homes listings, please access his website at www.dalewarfel.com.