Michelle Meyer, the well-known housing analyst for BofA/ML, has some bad news: The housing crisis isn’t over.
In fact, in her 2012 outlook piece, she says it’s “far from over” and that prices still have another 7% to decline nationally.
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The basic problem: There are still tons more foreclosures or “liquidations” yet to come.
The most crucial input to our forecast for construction and home prices is our assumption for foreclosures. Our securitized products research team estimates another eight million homes will be liquidated over the next four years, which adds to the six million homes that have already been liquidated since 2007. All told, we expect 14 million foreclosures or a quarter of all homeowners with a mortgage.
Not only is the wav of foreclosure not close to over, but 2013 will actually be the worst year yet.
Read more: http://www.businessi…t#ixzz1ffaMBuzN