The Real Estate Market Keeps Bleeding

Author: Clayton Harlan

The country found out just how bad the housing market is. Around September, it almost looked like real estate had reached the bottom and that it was slowly getting better.

As of today, the housing market dropped 16 percent from last year. 16 percent is a lot worse than what anybody had expected. It was so amazing that it had plummeted that far due to the fact that the government has in place a tax credit for homebuyers. The tax credit is $6,500 for people who have already purchased a home $8,000 for people buying their first home. You would expect that people are buying, but they aren´t.

The outlook for the housing market is gloomy. The banks are not refinancing and they are also requiring more money down when buying a home. These two factors alone will be the end of the real estate market as we know it. First of all, if you can´t afford your payment you are stuck with it. The banks have tightened up drastically. Second, even if somebody was able to sell their house, there would be nothing left in terms of equity, which means nobody will have enough money to put down on a traditional mortgage. All of this is a domino affect that will do the market in.

If you have any common sense, you will be able to figure out that this year will be the worst year yet for the global economy and for the housing market. Everything that is adding up is quite scary. Hang on, 2010 will be a wild ride.

I will keep you up to date with the housing market. If you would like to read more from me you can go onto my blog. http://www.claytonharlan.com