U.S. housing prices haven’t hit bottom and foreclosures will hamper economy for five years, experts say

TRD MIAMI /
Sep.September 28, 2011 12:31 PM


Paul Ballew, chief economist of Nationwide Mutual Insurance, accompanied attorney Adam Leitman Bailey on CNBC yesterday to diagnose the state of the housing recovery. Each of their statements proved grimmer than the last. Bailey started by noting the three markets, the well-performing luxury market, the muddling lower market that could be damaged by the conforming loan limit and the foreclosure market, which he said may not be sorted through for another five years. Meanwhile, Ballew said housing prices have yet to hit bottom and it may not be until 2013 that they actually do. Housing will continue to drag on an overall recovery for at least five years, according to Ballew. Finally, Bailey ended the segment with perhaps the gloomiest statement of all: “I think that homeowners greatest investment, and the way they can retire on money, being housing is a dinosaur,” he said. “We may not have appreciation or equity in our homes for 30 years.”


Related Articles

arrow_forward_ios
Lord Balfour Hotel

Mezz lender forecloses on Ocean Drive hotel in South Beach

Mezz lender forecloses on Ocean Drive hotel in South Beach
Josh Zegen of Madison Realty Capital and 777 North Ocean Drive, Hollywood (Google Maps)

Madison Realty closes on Costa Hollywood Beach condos for $43M

Madison Realty closes on Costa Hollywood Beach condos for $43M
3601 North Miami Avenue with Francisco Arocha

Midtown Miami development site in foreclosure hits the market

Midtown Miami development site in foreclosure hits the market
Florida Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)

Florida allows eviction moratorium to expire

Florida allows eviction moratorium to expire
Kelly Beam, Ricky Trinidad , and 3265 Bird Avenue (Credit: Google Maps)

Miami developer Metronomic files for bankruptcy

Miami developer Metronomic files for bankruptcy
Susan Gale and Variety Miami Beach

Miami Beach hotel facing foreclosure hits market for $37M

Miami Beach hotel facing foreclosure hits market for $37M
Gov. Ron DeSantis extended the moratorium on residential evictions and foreclosures in Florida to October 1st (Credit: iStock)

Florida extends evictions and foreclosures ban to October

Florida extends evictions and foreclosures ban to October
David Edelstein, George Gleason and 918-920 Lincoln Road (Google Maps)

Bank OZK seeks to foreclose on David Edelstein’s Lincoln Road buildings

Bank OZK seeks to foreclose on David Edelstein’s Lincoln Road buildings
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...