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A big hat tip to Housing Wire for sharing data of a leaked BofA analyst report on the housing market yesterday. The report shows that Bank of America is bearish on housing through the end of this decade and in to the start of the next. Bank of America sees housing pain continuing through 2011; which is the most distant of the ‘recovery’ dates I’ve heard. Every day it seems to get pushed further and further out as people digest information about what is really going on with all of these loans. The latest media darling, the Option ARM reset, seems to be pushing people out past the wave of likely foreclosures caused by those loans resetting and declaring stability after those move through the system.
Some points of interest from the excerpts that Housing Wire published:
- Cumulative housing price drop nationwide is estimated at 15%
- We’ll not see a housing recovery until 2011
This report comes on the heels of a Goldman Sachs report on California housing (h/t Irvine Housing Blog, PDF) in which analysts calculated that most California housing is 35-40% above sustainable market value.
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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