Calculated Risk carries a post today about a new BofA research report on the effects of the credit tightening and its impact on the housing market:
In a research note this morning, Bank of America Securities analyst Daniel Oppenheim wrote that mortgage lending problems go "well beyond subprime" are "likely to cut 15% of demand" for New Homes.
"Our view is that the excess inventory of homes for sale (the primary issue) and the reduced demand from tighter lending will lead to lower prices and likely exacerbate mortgage delinquencies and foreclosures," wrote Oppenheim.
There have been a lot of numbers bandied about in regards to where the housing market is going to land. There are ranges of prices dropping from 10-40%, demand being cut by 15-30%. In context of hundreds of thousands of dollars these variations are huge. So where do you think the housing market will land? How far off of its current levels will it come down?
Personally I think it will come down about 20% in terms of price as a national average. But it will remain to be seen.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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