Grand Rapids, MI -- (SBWIRE) -- 01/28/2011 -- Throughout the 2010 calendar year, financial advisor Dennis Tubbergen discussed the housing market in the U.S. with the readers of his blog and his monthly newsletter, Moving Markets™. While Tubbergen has been forecasting a recovery in the housing market to be stalled until the end of 2012, headlines at the end of December only served to validate his prediction.

“During the month of October, housing prices declined on a year-over-year basis for the first time since January of 2010,” explained Tubbergen, who is CEO of USA Wealth Management, LLC and a frequent keynote speaker at financial industry events.

He refers to a December 26, 2010 article posted on Bloomberg.com which states the drop in home prices indicates “housing will remain a weak link” as the U.S. tries to recover from economic recession.

The article goes on to claim the large number of foreclosures that have not yet reached the market could cause additional havoc with home prices in the new year. In fact, the chief economist at Nationwide Mutual Insurance Co. in Columbus, Ohio, Paul Ballew, was quoted as saying “The inventory overhang is so big, with foreclosures looming, it’ll take five years to absorb the supply.”

In October of 2010, Tubbergen referred to a SmartMoney.com article that stated one of the problems with falling prices in the current housing market involved Fannie Mae and Freddie Mac trying to unload some 150,000 foreclosed homes, offering special financing and warranties for repairs and renovations, along with discounted prices.

“Such sales are driving buyers away from fair-market properties in the same area, many of which are selling for thousands of dollars more,” notes Tubbergen. The end result is angry, frustrated neighbors whose nearby properties are being devalued along with the foreclosed homes.

Many economists believe evidence is mounting that the housing market will remain stuck near recession levels in 2011 while the rest of the economy may continue to improve.

“Thinking about buying real estate?” asks Tubbergen. “You might want to wait. Based on the facts, prices could continue to fall.”

Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in the USA Wealth Management Building in downtown Grand Rapids, Michigan. Tubbergen is CEO of USA Wealth Management, LLC and has an online blog that can be viewed at www.dennistubbergen.com. His weekly talk show The Everything Financial Radio Show is simulcast on two Michigan metro stations and also airs to over 600,000 financial advisors, with recent podcasts available at www.everythingfinancialradio.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. Therefore, no forecast should be construed as a guarantee.

Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.