Destin, FL, April 16, 2008 --(
PR.com)-- The U.S. credit crisis will see losses top those experienced as a result of the U.S. Savings and Loan Fraud scandal, according to a new report by Housing Predictor, which forecasts housing market futures in all 50 states.
The forecast was issued following the International Monetary Fund’s announcement last week that global losses from the credit crisis could rise to $945 billion.
The world’s largest banks are in the midst of taking write-downs in the worst financial disaster to hit the U.S. since the Great Depression, totaling almost $300 billion since the beginning of 2007. The IMF upset financial markets by issuing its statement that global losses could hit near the trillion dollar mark. However, Housing Predictor, which has an accuracy level of more than 80% with its forecasts, goes even further.
Housing Predictor forecasts more than 250 local housing markets and regularly tracks market changes to adjust forecasts to local market conditions. More than 5.6 million homes and other properties are forecast by Housing Predictor to be foreclosed through 2011 as a result of the crisis, barring any major government intervention. Some 2-million homes have already been foreclosed.
Assisted by the Fed and the Treasury Department, many of the nation’s largest banks are working on new solutions to the crisis to release more funds to potential home borrowers.
The center stage of the nation’s real estate crisis has been focused on Wall Street since last summer when investors refused in mass to buy securities tied to heavily leveraged subprime mortgages. The rough road for many of the nation’s real estate markets, however, came much slower with deflation after many mortgage lenders tightened the supply of money to invest in mortgages in the conventional lending market.
The nation’s fifth oldest investment bank, Bears Stearns is being bought out with government assistance by JP Morgan, which is expected to post a small profit this week, despite huge losses in highly leveraged loans. Some securities have been leveraged as high as 1 to 10 for every dollar invested.
To read the new credit crisis forecast, check your market forecast and search foreclosures visit Housing Predictor dot com.
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