After four months of gains, home prices flattened in October. Worse yet, industry insiders think that they'll soon start to fall.
Prices have risen more than 3% since May, according to S&P/Case-Shiller.
But most forecasts predict price declines in 2010, with possible losses ranging from anywhere from 3% on up. Fiserv Lending Solutions, a financial analytics firm, forecasts that prices will fall in all but 39 of the 381 markets it covers, with an average drop of 11.3%. ...
There are three main reasons for the reversal: a coming flood of foreclosures, rising interest rates and the eventual end of the tax credits.
Thursday, January 07, 2010
Home prices forecasted to fall in 2010
From CNN Money:
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Thanks for giving us the national picture. CNN Money also predicts home prices in the DC area will bottom in 5 months and be up 5.6% in the coming year:
ReplyDeletehttp://cgi.money.cnn.com/tools/homepricedata/index.html
yeah Im glad all these predictions have been spot on, and I do mean perfectly on, over the past 6 years!
ReplyDeleteWell they also predict 8-14% increases for the different CA markets between 6/10 to 6/11 so it seems like a particularly bullish source.
ReplyDeleteBut even if they are right, the 5.4% rise followed by an 11.5% fall is still a 6.5% decrease between 6/09 to 6/11.
Well my favorite thing about all these flame wars and predictions, is that at the end of the day prices have and will continue to decline.
ReplyDeleteI will see you guys posting predictions that prices have bottomed and will go up soon 5 years from now I bet.
the government's bag of tricks os near empty. the pressure cooker is ready to blow....
ReplyDeleteI love euphamisms that are nothing more than one person's opinion.
ReplyDeleteThere is no end to the weapons the govt has to prevent the decline. The release valve is now in place to slowly let the pressure out of the cooker.
See? I can do it too!!!
yeah we can all say euphamisms....but the best part is prices are STILL GOING DOWN!!!
ReplyDeleteAnd they will......for many many years.
If prices go up, it's due to the same reasons the US stock markets having been going up in lockstep with the dollar decline --- inflation. Everything is priced higher with inflation. In the same way that people believe the stock market is rising due to an economic recovery, Joe Sixpack will also believe that housing prices are going up due to a housing recovery. Nevermind that Joe Sixpack's retirement is in shambles now that his savings is worthless and he can't retire in this country -- our new socialist/communist government will take care of him! And he'll learn to love it because the media will condition him to do so!
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