Alan Greenspan: Double dip recession?

August 3, 2010 by  
Filed under Short Sale/Loan Modification Blog

Are we facing a double dip recession?

Greenspan predicts that a double dip recession is in the making.  People need to realize that the housing market is not set for growth and understand that their will be decrease in values.

It is important to remember the high unemployment rate, this constant increase of shadow inventory and increasingly  stringent mortgage underwriting standards will diminish any potential growth in the housing market for several years to come.  I am not pleased with the temporary fixes that they have done to “end the recession”.  I am sure that we will see another dip as these patchwork fixes don’t make for a long term solution.

http://www.topnews.in/files/alan-greenspan.jpg

A copious amount of shadow inventory from the refi boom (circa 2002-2007)will need to be flushed from the system, in addition to the numbers added from the high unemployment rate. Even if mortgage rates drop to .5% this still will not be a fix if the majority of people won’t be able to qualify for these loans.

Housing Assist Coldwellbanker