The If and When of Recovery (video)
It's worth taking a look at this recent Wall Street Journal interview with Real Estate expert John L. Burns.
Mr. Burns confirms a lot of what I've been predicting for months now for the 2010-2011 Atlanta real estate market.
In the video he explains why FHA loans and migth contribute to a prolonged recovery.
Here are a few reasons why 2010 will not be the year of recovery:
**We are likely to see what economists refer to as a ‘W’ shaped recovery…recent news and the surrounding economic environment supports us being in the first leg of the "W"… going up (only to come back down in 2010)
**FHA, with it's monstor growth (2% of the market in 2007 to over 23% right now), has become the new ’sub-prime’
**Without continued government intervention (tax credits, FED purchasing mortgage backed securities to keep interest rates artificially low, etc) the real estate markets will see a massive decline.
Check out the video and share your thoughts: