Thursday, August 6, 2009

Housing to Continue its Decline

According to Deutsche Bank, the housing sector will not be recovering anytime soon.

The percentage of U.S. homeowners who owe more than their house is worth
will nearly double to 48 percent in 2011 from 26 percent at the end of March,
portending another blow to the housing market, Deutsche Bank said on

Covering 100 U.S. metropolitan areas, Deutsche Bank in June forecast home
prices would fall 14 percent through the first quarter of 2011, for a total drop
of 41.7 percent.

Regions suffering the worst negative equity are areas in California,
Florida, Arizona, Nevada, Ohio, Michigan, Illinois, Wisconsin, Massachusetts and
West Virginia. Las Vegas and parts of Florida and California will see 90 percent
or more of their loans underwater by 2011, it added.

"For many, the home has morphed from piggy bank to albatross," the
analysts said.

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