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According to recent economic data, the housing market is not expected to even out for at least two more years.  Currently the market is flooded with dilapidated properties, which will take until mid to late 2013 to clear the market.  Shelley Leonard, the executive in charge of consumer and home equity lending initiatives at Lender Processing Services adds “It will take the market until 2015 or 2016 to get to levels to where they were in 2009.”

The gloomy outlook is also predicted by Mark Greene, chief executive officer at FICO. “Before the problem goes away, it will be 50 months at the current rate of sales for foreclosures to start to go away, and that’s only if there are no more foreclosures,” said Greene.

These industry leaders spoke at the conference sponsored by the Consumer Bankers Association (CBA), which took place with eight different conferences over a three-day span in Florida. The CBA-sponsored conference brought together the nation’s largest financial institutions and regional banks to discuss the current state of the market.  The conference included attendees who were mostly focused on home equity lending.

Most recently, the National Association of Realtors released the existing home sales report, which indicated that prices fell to a six-month low in May.  This adds stress to a market in which there are fewer home buyers seizing the opportunity to purchase homes even though mortgage rates are near record lows.

Economic data will continue to be monitored to predict short-term progress within the housing market.

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