WEBCAST: Expert says housing bubble has adjusted

MT. PLEASANT, PA.
February 23, 2007 8:55am

The foreclosure market in California and the nation in 2007 may not be quite as intense as it was last year but many home buyers who used creative financing to get into their homes are still in danger of foreclosure, says Serdar Bankaci, founder and president of Default Research Inc. of Mt. Pleasant, Pa.

(Listen to Mr. Bankaci’s comments in a CVBT Audio Interview. Please click on the link below to listen or download to your iPod or PC.)

“I think the housing bubble has kind of adjusted itself,” Mr. Bankaci says. “What we’re expecting for 2007 are increases but not as severe as 2006.”

Contributing to more stability is a leveling out of mortgage interest rates, he says.

But another reason, he says, is a slowdown in the escalation of home prices and even, in some areas, a lowering of prices.

“As the housing prices adjust, I think homeowners won’t need to use these 100 percent interest-only loans. I think people have kind of learned their lesson,” Mr. Bankaci says.