Expect more home foreclosures, at least for the sort term. UW Madison real estate professor Morris Davis says the other shoe has yet to drop, as far as the subprime mortgage meltdown is concerned. “Whatever is about to happen hasn't happened yet,” says Davis. “We've seen some foreclosures, and I think foreclosures are going to rise quite a bit.” In other words, says Morris, things are likely to get worse before they get better, and it could take awhile for home prices to began climbing back up. “My best guess is that we're not going to see a turnaround to house prices for probably another three years.” Davis says he has mixed feelings about subprime mortgages, noting that homebuyers who got them more than a couple of years ago made money, while more recent subprime homebuyers are struggling.
AUDIO: Bob Hague reports (:60 MP3)
