If you want to believe most of the financial “money-crunchers” or Aunt Hazel and her crystal ball with the snowflakes floating inside, for the next three years (at least) the housing market will be put on the shelf under the label: unsold, underwater, unsettled. Other housing analysts see dark clouds overhead along with packs of vultures flying lazy circles over pipelines of unsold housing tracts and more foreclosures. Hide the children, it’s not going to be a pretty sight, folks. Then, adding tightened lending standards and legal entanglements to the pot it becomes even more frustrating for homebuyers.
Even FHA, for decades the most liberal mortgage lender guarantor in the housing marketplace, has taken such a massive default hit they have upped their minimum FICO score approval ante from 620 to 640 which will quickly eliminate about seven million potential buyers. Actually, it’s a shame this housing unsettlement is projected to happen in 2011 especially in the lending business. With the plethora of unsold and foreclosed properties in most states (think Nevada and Arizona) lenders will become overly picky on who gets the loans, and any buyer or buyers with a large amount of available cash on hand should be able to buy an entire street of homes at rock-bottom prices to rent and hold until the housing market turns around.
However, due to the horrible imbalance in the housing market, 2011 most likely will deliver a weak economy, tight mortgage underwriting, falling home prices and falling sales. Not good.