Industry News

Market experts predict end for real estate slump

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While part of the real estate downturn is behind us now, the buyer's market will likely continue for at least two more years, foreclosures are likely to surge and "we're heading into a year with some more price declines," a real estate consultant told an audience of building-industry professionals on Thursday. John Burns, a consultant who presented a housing market outlook during the annual Pacific Coast Builders Conference in San Francisco, said that a combination of factors, including low interest rates and unconventional mortgage products, dug deep into the pool of future home buyers during the prolonged real estate boom. And the market is still adjusting, he said. "I know with a very high level of confidence that the number of foreclosures is going to surge," he said, as a high volume of subprime loans and other adjustable-rate loans are headed for a major reset in rates. "It's really going to occur -- most of it -- next year, so we're going to see some foreclosures and just be pre...