Quote:
Originally posted by sammyg2
Yes there are more houses on the market. yes it takes longer to sell a house now. Yes there are alot of bad loans out there just waiting to be defaulted on, but at least in Orange country THERE IS NO real estate crash. There isn't even a bubble.
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Right now, the economy is doing well. Unemployment is low, inflation seems in check and the stock market has been solid except for some volatility in the last week or so - these are the reasons why the recent housing slump hasn't affected the overall economy much.
After the 2001 recession, the delinquency and foreclosure rate of subprime adjustable rate mortgages rose to 10%. Today, we are at about 5.6%, but we also have
twice the number of subprime adjustables out there.
If we go into a recession, the housing market will probably ensure one of the largest downturns in our history, IMO.
