Hold onto your hats folks, It's the big one.

How Can Anyone Claim That The Housing Crisis Is Over When The Delinquency Rate On U.S. Mortgages Continues To Explode At An Exponential Rate?

Housing prices have stabilized, tax breaks passed by Congress,  So is the U.S. housing crisis over? if you listen to many of the talking heads on the news channels, you might be tempted to think that the worst of the housing crisis is behind us and that we are headed towards recovery.  But that is not what is happening.  The truth is that we are just now getting ready for round 2 of the real estate nightmare. 

Where is the evidence to back that assertion up?  Well, just consider the chart below.  The delinquency rate on U.S. residential mortgages continues to explode at an exponential  rate....

Please note that the rate of mortgage delinquencies is now much, much higher than it was when the housing market was crashing so hard in 2007 and 2008.  More people than ever are falling seriously behind on their mortgages, and that means that more homes than ever are in danger of being foreclosed.

A massive second wave of adjustable rate mortgages is scheduled to reset beginning this year, and if it goes anything like the "first wave" did, the results could be absolutely catastrophic for the U.S. economy.  Just check out the chart below....  

This coming second wave could result in another huge mountain of foreclosures being forced on to the market.

So is the housing crisis over?

No.

Not even close.

Is The United States Headed For A Commercial Real Estate Crash Of Unprecedented Magnitude?

The truth is that U.S. commercial property values are down approximately 40 percent since the peak in 2007 and currently approximately 18 percent of all office space in the United States is now sitting vacant.  That qualifies as a complete and total mess, but the reality is that the commercial real estate crisis is just starting.

In fact, the commercial real estate market is likely to get a whole lot worse.  It is being projected that the largest commercial real estate loan losses will be experienced in 2011 and the years following.  Some analysts are estimating that losses from commercial real estate at U.S. banks alone could reach as high as 200 to 300 billion dollars.  To get an idea of how rapidly the commercial real estate market is unraveling, just check out the chart below....

Does that look like things are getting better to you?

How's that for a couple of headlines.    

The links are here and here.   The writer doesn't seem to be a chicken little.   Of course I am a little biased here because I wrote about this several times last year and . . . Oops,  here it is.   What do ya know.  

If you are not prepared now,  you should be.   

Want to know more?  You should.  Click here.