Trulia founder Pete Flint and Realty Trac Senior Vice President
Rick Sharga estimated that we may see 4,000,000 foreclosures in 2010.
This would be the highest rate of foreclosures since the real estate crash.

 “When the tax credit runs out, inventory will go up and interest rates will
Go up. Prices will go down again. We have a long way to go until we have
A healthy real estate market.” 

 In their forecast, they cited several reasons why things will remain challenging in 2010:

 * Mortgage interest rates will move into the 6 percent range.

 * The record high unemployment rate will continue forward

 * Negative equity will drive many home owners from their homes

 * Expiration of the tax credits

 * Difficulty buyers and investors have finding new financing for their
Home purchases

 * Large number of Alt-A and negative amortization loans that will
Begin resetting starting July 2010.

 For many of us in real estate, we want to be positive about a rebound in our market.
However, the economic factors influencing sales and home prices point to an “ugly”
Year. We cannot simply try to hold on for a few more months. Instead, we need to
Build our businesses and marketing campaigns around the spike in foreclosures.

 

 

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