Doom on you, home buyer

10 charts to scare the piss out of you prospective home buyers.

the brutal part of this ongoing flogging has not yet begun

Are you happy about the rise in home prices that have occurred in some places these past few months?

Well...

Mark Zandi, chief economist at Moody's Economy.com in a Reuter's interview said, "Home prices, as measured by the Standard & Poor's/Case-Shiller U.S. National Home Price Index, will trough in the third quarter of 2010 after declining 38 percent"

here are some other stats he was spouting:

"about 25 percent of single-family homes with mortgages have negative equity"

"7.5 million foreclosure sales will have taken place between 2006 and 2011. The majority of these sales, however, have not emerged yet, with 4.8 million foreclosure sales expected between 2009 and 2011"

"Foreclosure sales will increase, and home prices will resume their decline by early 2010 as mortgage servicers figure out who will not qualify for a modification"

oy.

say goodbye to the cornucopia of cash

And the headline reads:

Half of mortgage borrowers will be 'underwater'
An estimated 25 million borrowers will owe more than their house is worth by 2011

CNN Money article here.

The Deutsche Bank analysts are at it again:

"If our home-price forecast is correct, roughly one in two mortgage borrowers and one in three homeowners will owe more than their home is worth"

That is IF they are right. If finance people have proved one thing in the past few years it is that just about everyone can be simultaneously wrong.

I have a feeling that the actual outcome will be fairly close to their prediction.