3 reasons why some say home prices are heading lower.
(Lake Tahoe Real Estate Blog, January 15,2010, Richard Bolen)
This comes from a CNNMoney.com article published earlier this month. Not that any opinion is ever gospel, we thought it interesting, and it certainly seems to be the opinion of some "industry insiders.".
Here’s some bullet points in the article:
- After four months of gains, home prices flattened in October.
- Prices have risen more than 3% since May, according to S&P/Case-Shiller.
- Most forecasts predict price declines in 2010, with possible losses ranging from 3% up.
- Fiserv Lending Solutions, a financial analytics firm, forecasts prices will fall in all but 39 of the 381 markets it covers, with an average drop of 11.3%. (South Lake Tahoe is not on the Fiserv list.)
There are three main reasons some economists are predicting fjurther declines:
- more foreclosures coming
- interest rates will rise (see different opinion here)
- end of homebuyer tax credits
(full article here)
See the original Article, "One Oh-Ten Real Estate Forecast" in our main blog.