Home Prices

Home prices began to stabilize during 2009, and homes sales showed some signs of encouragement.  We expect more of the same in 2010, although there will be some additional headwinds: higher rates and expiring tax incentives will likely create a lull during the summer months.  After a modestly good start to the year, home prices could actually decline in some areas by 5% to 7% once the temporary stimulus expires.  In the end, however, home prices should eventually and slowly begin to firm up toward the end of the year.