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Today I wrote that pending home sales hit a two-year high in June — seemingly another indication that the housing market has hit bottom.
But former Federal Reserve Chairman Alan Greenspan warned on ABC’s “This Week With George Stephanopoulos” Sunday that recent signs of housing stabilization might only be temporary, according to a Reuters report.
Foreclosures are expected to rise in coming months as banks dump more inventory on the market and pay-option adjustable rate mortgages recast.
It is possible that could get a second wave down … Under those conditions, we would get a very significant change in the underlying confidence in the consumer area [as foreclosures rise and more home values fall below their mortgage levels].
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.