photo credit: Just a guy who likes to take pictures
More problems could emerge for the US real estate market, marking trouble for owners but even cheaper properties for buyers, an expert has suggested.
Michael Lombardi, financial commentator and columnist for online newsletter Profit Confidential, said 10 years of economic growth would not halt after only a year’s worth of slowdown.
There are still too many unsold properties on the market, Lombardi warned, for a full-on recovery to take shape.
He said:
“A decade of economic expansion does not come to a halt after one year of economic contraction.
“There is more pain ahead for the housing market as the inventory of unsold homes is just too overwhelming for the market to absorb.
“Financing conditions remain very difficult, consumer confidence in the housing sector has been crushed.”
His comments came after other experts also said house prices in the US had not yet hit their bottom.
Gregory Paquin, president of property consulting firm Paquin Group, said parts of California would level out next year and start seeing recovery signs in 2009 to 2010.
According to The Record, Paquin also said builder’s base prices for new homes for sale are now coming down after developers initially remained reluctant to lower them at the start of the downturn.
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