Residential real estate prices in New York City are far above levels needed to bring supply and demand into balance. The basis for the gloomy forecast in GEI Investing is that mortgage delinquency rates have skyrocketed while foreclosure auctions have declined. From early 2008 to early 2010 mortgage delinquencies in Queens increased by more than 180%. From late 2008 to late 2010 the foreclosure auctions in Queens declined by more 50%. These numbers indicate a huge flood of foreclosures has been held back by lender inaction. more »

Some people are making a big mistake. The error? Playing roulette with home ownership and buying one home with a mortgage before thay have sold the previous home, which also has a mortgage is always a gamble. In the current real estate markets in many parts of the country it can be a long odds bet. In a strong housing market the bet has much shorter odds of going bad. But the nation has many more weak markets than strong markets today. more »

Many homeowners see strategic default as their best option, and all major housing markets in the US could suffer. As home values continue to decline and loan-to-value (LTV) ratios rise, the number of homeowners choosing to walk away from their mortgage obligation will relentlessly grow. more »