Worse to come for housing?
I don't think housing is out of the woods yet. In my opinion, the worse is still to come. Take a look at these stats released by the WSJ today.
$31.8 billion in subprime adjustable-rate mortgages got adjusted this month - the highest amount of subprime ARMs due to reset over a one-month period in this housing cycle.
In August, foreclosure filings rose 36% from the previous month and were up 115% from last year, according to RealtyTrac. As ARM resets reach a peak, more homeowners will have trouble meeting payments.
It would take 9.7 months to sell all of the single-family homes now on the market, near the previous peak set in May 1989.
All this means that housing in the months to come will most likely get worse, not better.
Reference
Housing Slump Could 'Reset' Itself Again, WSJ
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