Equity to Decline in 2009
Posted on 20 January 2009 by Jamie
Some experts predict that home values will continue decline throughout this year, not picking up again until 2010.
The Associated Press reports:
“We do expect ’09 to be the down year, to be the bottom,” David Crowe, chief economist for the National Association of Home Builders, said during a news conference at the International Builders’ Show, which runs through Friday.
The outlook reflects grim forecasts that call for home prices, new construction and home sales to decline this year, while mortgage defaults, foreclosures and unemployment continue to rise.”
A growing number of homeowners are taking out HELOCs now as a precaution against future declines. However, this strategy can be costly for those who don’t have a planned use for the funds in the next few months.
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