Real Estate Market - What The Crystal Ball Beholds For The Markets?

The one thing that is in minds of most homeowners is that how much worse it will get before it gets better. The last one year has seen major turmoil in the real estate market. It has never been this bad. So it's no wonder that it is the major concern of most homeowners. Property values have taken a nosedive and the default rates have gone sky high. First time buyers are finding it difficult to find an entry into the market so home ownership is falling. With increased foreclosures and compulsory bankruptcy filing things are going out of hand.
Like most others you may also be worried about how much worse is this going to get. Experts and their statistics say that home prices are expected to fall further. No improvement in interest rates coupled with difficulty in credit is partly responsible for this downward spiral. The softening commercial market is also a sore point of concern. Experts commonly believe that there is going to be no improvement this year in the commercial real estate. This includes shopping complexes, offices and apartments. The economic slowdown could be a major factor behind this, thus one can expect further rise in interest rates.
There is no relief in immediate sight and none is expected soon. Property inventory has been steadily rising these last few months. To hope for any improvement in the market would mean liquidizing of this piling inventory first. The United States Census Bureau has come up with the conclusion that the number of vacant homes in 2007 has reached zeniths that have not been seen since 1965.
No improvement is expected in the housing demand soon, thus the house prices are prone to fall further. Sub prime loans are now becoming more difficult, thus one cannot hope that the high risk buyers may provide any relief. They no longer qualify for such loans. Another fact is that people with good credibility who can qualify for mortgages are finding it tough to arrange for adequate home equity.
The situation in the residential market is bad across America, but Florida seems to have been hit the worst. This is partly due to the fact that most of the thousands of condos commissioned will be completed this year. Though people have made deposits, most are not expected to follow through the purchase due to various factors like fallen prices and tight credit situations. If this happens it could lead to mass default in construction loans, thus further compounding the problem.
California is also staring into the eyes of a similar devil. It has many people struggling to pay the monthly mortgage installments. These are mainly the high risk group which has borrowed money to buy houses even when the prices were soaring sky high. They can no longer off load these extra properties; neither can they manage their monthly payments. The home prices are falling even as the mortgage rates are north bound. There seems to be no way out.
The dawn lies just after the darkest part of the night. Our only hope lies therein. We have to wait till the market crashes completely and reaches rock-bottom. After that the market will have to rise, as it can go down no further. We thgus have to cross our fingers and wait for the proverbial dawn to come and relive us of this dark night.