Home Sales down in December 2009

Well if anyone here reads my articles on FreeRateUpdate.com and Google News then this is no suprise as I have predicted this. Existing home sales dropped again almost 17%! We thought with the new home buyers tax credit sales would surge and we would be on the upswing of the housing crisis. That dream has been crushed. Sales overall are up from 2008 but are still no where near prices 4 years ago. The big question on everyone's mind is when are we going to finally be out of this mess? Well as I have said all along..... it depends on the unemployment rate. If people start regaining their jobs they can pay their mortgage, if they can pay their mortgage they don't lose their home! DUH! We know that there is another flood of foreclosures set to hit the real estate market due to ARM mortgages re-setting and the backlogged foreclosure inventory that the banks have been sitting on. This will bring prices down again and is expected for the 1st half of 2010. Washington is expecting states to make more budget cuts and cut more government jobs this will hurt homeowners as well, 2010 will not be a good year for some. It will probably take another year before we see the light at the end of the tunnel but we won't be where we were in 2005 and 2006 until around 2020 or later