No Recovery Yet for the U.S. Housing Market; Report by Top Financial Newsletter Profit Confidential

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Michael Lombardi, lead contributor to Profit Confidential, believes that the homeownership rate will continue to drop in the coming years and that the ideas that the housing market has bottomed and that foreclosures are a thing of the past are simple fallacies.

No Recovery Yet for the U.S. Housing Market; Report by Top Financial Newsletter Profit Confidential

No Recovery Yet for the U.S. Housing Market; Report by Top Financial Newsletter Profit Confidential

“More people are deciding to rent instead of buy in the U.S. housing market,” says Lombardi.

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Michael Lombardi, lead contributor to Profit Confidential, believes that the homeownership rate will continue to drop in the coming years and that the ideas that the housing market has bottomed and that foreclosures are a thing of the past are simple fallacies.

“More people are deciding to rent instead of buy in the U.S. housing market,” says Lombardi.

In the article U.S. Housing Market Far From a Bottom, Lombardi outlines several reasons behind his thesis.

“Banks are not lending out to people, mortgages are hard to get,” says Lombardi. “Secondly, real disposable incomes are not rising at all for people to justify entering the housing market.” Lombardi believes the average American is not feeling wealthy; they feel they are just getting by.

“A third reason is that the record $1.0 trillion in student loans will restrict many first-time home buyers from getting a mortgage, because they already have too much debt,” says Lombardi.

Another good reason according to Lombardi is that people are deciding to rent. “Like the stock market, after people have been burned or have family members and friends that have been burned by stocks, one tends to stay away from the stock market in general. The housing market is no different.”

Lombardi also highlights that the foreclosures rate in the U.S. still remains very high. “Estimates for the number of homes in foreclosure are approximately 5.6 million,” says Lombardi. “Home foreclosures should continue to rise in 2012.”

Lombardi says this means that more empty homes will enter the housing market, further putting pressure on home prices.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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