Mayors: Housing crisis will worsen in 2008
Mayors from across the country are meeting in Detroit this week, and not surprisingly, they’re spending much of their time discussing the threat of declining housing prices and what it means to U.S. cities.
The U.S. Conference of Mayors holds meetings every year. It’s a chance for mayors from across the country to discuss issues that impact their constituencies. This year, the nation’s housing-industry troubles are dominating the agenda.
A recent story on CNNMoney, says that the mayors expect housing prices to decline an average of 7 percent across the country in 2008. This will result in a $1.2 trillion loss of property.
The mayors are predicting even larger losses in some markets. For instance, they say that home prices in California will decline 16 percent in 2008.
Increasing foreclosure rates are also troubling the mayors. According to the CNNMoney story, the mayors expect the number of foreclosures to jump by at least 1.4 million next year.
The housing industry problems will cause deeper problems with the nation’s economy, the mayors predict. With home equity levels in a serious decline, the mayors are predicting that the country’s consumer-spending levels will increase by a rather paltry 2 percent.
The mayors, then, aren’t spreading much holiday cheer with their conference. But this real estate market isn’t one destined to bring a lot of “ho-ho-ho”s to anyone.
