If you thought home prices were bottoming out, you may be wrong. They're expected to head a lot lower.
Home values are predicted to drop in 342 out of 381 markets during the next year, according to a new forecast of real estate price. 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.
In fact, those areas with high concentrations of foreclosure sales will experience the steepest drops, according to Fiserv. Miami, for example, is expected to be the biggest loser. Prices are forecast to plunge 29.9% by next June -- after having already fallen a whopping 48% during the past three years.
If Fiserv's forecast holds, Miami real median home price will tumble to $142,000 by June 2011.
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That is why it is a great idea to sell while you still can and lease/rent. Leave others holding the bag so to speak.
ReplyDeleteHomes purchased tied to employment and interest rate.
Will people have jobs? No
Will the Fed keep interest rates at the bottom much longer? No
Housing is screwed. Fire sales galore coming up. Entertaining actually to see what people still want for a house right now. If they had any sense they'd take what they can and run.
Every 'gain' since 2001 will be wiped out, unsustainable. Every gain since 1996 will be wiped out, also unsustainable.
ReplyDeleteBy the time the sustainable level is reached, the entire US will be like Detroit.
Beautiful houses for $1000. Nevermind the impoverished neighborhood blight and complete lack of jobs anywhere within 100 miles of the location.
One of my regrets was not buying some property in the late 90s. Selfishly, I must say it will be nice to see properties and homes go back to a normal level.
ReplyDeleteThe average person can't even think about buying a home in the last six years unless completely bending over to debt servitude to a bankster. Forget it. I would rather live in a tent than become a wage slave to the banksters would create money and debt out of nothing.
2:52 Not all of us over bought our houses. If I leave my house and rent, it will cost me $200 more a month in rent than I pay my mortgage. I think I'll keep my little cheap house. For the idiots that bought more than they could afford, RUN!
ReplyDeleteIt was all about GREED. Nothing more. Brains go tilt when GREED comes knocking.
ReplyDelete