What does a cooling market mean for Main Line and Pennsylvania Homes? |Main Line Pennsylvania Real Estate | Chris Benedict, RE/MAX Main Line

The remaining balance of 2007 and a good part of 2008 will be the most beneficial time to acquire a deal in the Philadelphia Pennsylvania and Main Line housing market. The sub-prime loan crisis has brought forth the highest number of foreclosures since the U.S. Savings and Loan Fraud bailout more than 15 years ago, providing the greatest inventory of discount bargain homes in numbers that have not been seen in years.

A few real estate markets situated in Southern California, South Florida and Nevada amidst other states have seen prices drop drastically from their heydays as a result of the subprime loan thrashing, however, the fallout has not hit nearly as hard in the Delaware Valley.

Las Vegas, NV is the new epicenter of the subprime loan crisis with more than than 40% of all houses and condominiums on the market for sale vacant. A lot of subprime loan foreclosures are currently in Las Vegas, more than any other city in the nation. Phoenix, Arizona whose market has long been distinguished as a leader in loan fraud is 2nd to Sin City in subprime foreclosures and prices are collapsing in the aftermath of the crisis.

There are estimates that more than 200 local housing markets are headed for a price correction. However, despite the subprime crisis, many markets spread out from the pacific north-west to the south remain with flourishing sales activity including parts of Texas and New Mexico, and in the north west, Oregon and Washington. Sales remain brisk on the Main Line with price drops from 5% to 10% in some specific markets.

The flood of houses and condominiums is having a severe affect on some local economies in California, Florida, Massachusetts, and Nevada among others. According to real estate analysts it will take years for markets in many areas of the nation to return to the hey-day levels of 2004. Investors are flocking to some markets in these states to make buys of foreclosures, which could be considered tantamount to gambling in this day and age.

New home starts have declined as builders cut back inventories after the largest construction boom of new housing in the nation's history. There are forecasts that more than 2 million homes will be foreclosed in the U.S. through 2010, which will account for a record number of foreclosures.

Seventeen interest rate hikes and widespread mortgage fraud have slowed the majority of the nation's booming real estate markets to a creeping halt. However, some second home and vacation real estate markets have been protected from subprime fall out along with higher priced areas. Only some 13% of the nation's mortgages are backed by subprime mortgages.

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