Grand Rapids, MI -- (SBWIRE) -- 05/13/2010 -- Along with other notes of economic ‘good news’ in the media recently, suggestions surfaced that a turnaround in the housing market might be taking place as evidenced by a slight drop in delinquencies and total foreclosures.

Dennis Tubbergen, a top financial advisor and CEO of USA Wealth Management LLC, a federally registered investment advisory company, questions that sentiment. He notes that when looking at statistics from the past several recessions, the percentage increase in current foreclosures since the previous peak is twice as high as during any other recession in recent history. And the housing market downturn may not be over.

“From a foreclosure perspective, this recession is far worse than any prior recession,” Tubbergen, a well-known financial advisor, warns. “That’s pretty much a given no matter who you are talking to. But where is the housing market headed? Are we finally on the rebound given the better news that we’re hearing recently?”

According to Tubbergen, the behavior of the housing sector over this recession is unlike anything in recent history and to take a few numbers at face value may be indulging in premature conclusions.

He notes an excerpt from The Los Angeles Times on April 24, 2010 that states February’s revised annual rate of 324,000 houses sold “was the lowest since the government began tracking such statistics in 1963.” With February numbers so low, March was bound to look better no matter what happened. And tax incentives could have played a part in March’s numbers with a still-to-be-seen effect yet to come.

“In my view, the March numbers reflect a tax policy which has some potential home buyers buying homes now rather than at some point in the future,” states Tubbergen. “This policy could cause future home sales to fall from where they would have otherwise been.”

Tubbergen’s points here are well taken. If February home sales were far worse than this country has seen in the past 47 years, his calling the March numbers ‘a dead cat bounce’ are right on track.

How does Tubbergen view the housing market’s future?

“Until the massive amount of consumer debt that’s out there gets dealt with, I question whether or not there truly can be a meaningful, long-term increase in home sales,” he concludes.

For more information on Tubbergen’s views, visit http://www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.