No Housing Bottom Yet
Editor's note: As a special feature for April, TheStreet.com offers a 20-part series on virtually everything about real estate. This installment is part 20.
I know -- you're about as sick of hearing about the housing market as you are of Rosie O'Donnell and her recent antics.
But while your life will go on just fine if you ignore the Rosie noise, you may be personally affected by the housing market's behavior, so listen up.
The housing market has not hit its bottom yet and probably won't until some time in 2008.Yep, I said it. I can feel the email coming already. Look, I don't like to be doom-and-gloom. I'm Marcia Brady -- the glass is always half full in my world, but there are too many reasons to believe that we still have a way to fall.
The Inconvenient TruthTo start, we're completely overextended. According to data gathered by the Federal Deposit Insurance Corporation (FDIC) from the end of 2001 to the end of 2006:
- Loans secured by real estate are up 76% to $4.51 trillion.
- Residential mortgages for one- to four-family homes jumped 57.7% to $2.18 trillion.
- Commercial real estate loans rose 58.8% to $904 billion.
- Home equity loans are up 203.4% to $559 billion.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV