If you thought home prices were bottoming out, you may be wrong. They're expected to head a lot lower. ...With winter coming, Miami is about to start looking better and better.
Overall, the national median home price is predicted to drop 11.3% by June 30, 2010, according to Fiserv, a financial information and analysis firm. For the following year, the firm anticipates some stabilization with prices rising 3.6%.
In the past, Fiserv anticipated the rapid decline in home-sale prices over the past few years — though it underestimated the scope.
Mark Zandi, chief economist with Moody's Economy.com, agreed with Fiserv's current assessments. "I think more price declines are coming because the foreclosure crisis is not over," he said. ...
If Fiserv's forecast holds, Miami real median home price will tumble to $142,000 by June 2011. ...
Brad Hunter, chief economist for Metrostudy, which provides housing market information to the industry, ... pointed out that the tax credit for first-time home buyers helped support prices during the three months of Case-Shiller gains. ... But the market assistance ends when the credit expires on Dec. 1. Hunter also sees a new wave of foreclosure problems coming from higher priced loans and prime mortgages.
Tuesday, October 20, 2009
Fiserv: Home prices to resume decline
Home prices are predicted to fall 11% by mid-2010: