According to recent reports, housing prices are continuing to fall and more poor credit mortgages are going into default. Although many hoped that the lowering of property values would spark interesting first time home buyers, banks have tightened their restrictions to the point where it is becoming impossible to get a poor credit mortgage, or even a regular mortgage. Those with perfect credit are even finding it hard to get a bank to work with them in the current climate.
“It does not look like early 2008 is marking any turnaround in the housing market,,” said David Blitzer, S&P index committee chairman. “Home prices continue to fall, decelerate and reach record lows across the nation. No markets seem to be immune from the housing crisis.”
David Stubbs, senior economist at Rics in London said, “Prices on the Case-Shiller index have at least a further 10 per cent to fall before they stabilise,” he said. “The existing homes sales figures for February which showed a modest bounce are likely to be reversed in coming months as the pressure on the US economy intensifies, and the labour market continues to weaken. Any lasting stabilisation in sales activity appears to be at least six months in front of us, if not more.”
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