Home RSS
Real Estate
Cars

Home prices to take hit next year in many markets

SFGate
In this Sept. 18, 2010 photo, a "new price" sign has been added to a realtor's sign at a home in Glendale, Calif. Home prices rose in July for the fourth straight month, but many cities are bracing for declines in the year ahead.

In this Sept. 18, 2010 photo, a "new price" sign has been added to a realtor's sign at a home in Glendale, Calif. Home prices rose in July for the fourth straight month, but many cities are bracing for declines in the year ahead.


Don't take the latest snapshot of U.S. home prices too seriously. The Standard & Poor's/Case-Shiller 20-city index released Tuesday ticked up in July from June. But the gain is merely temporary, analysts say. They see home values taking a dive in many major markets well into next year.



That's because the peak home-buying season is now ending after a dismal summer. The hardest-hit markets, already battered by foreclosures, are bracing for a bigger wave of homes sold at foreclosure or through short sales. A short sale is when a lender lets a homeowner sell for less than the mortgage is worth.

Add high unemployment and reluctant buyers, and the outlook in many areas is bleak. Nationally, home values are projected to fall 2.2 percent in the second half of the year, according to analysts surveyed by MacroMarkets LLC. And Moody's Analytics predicts the Case-Shiller index will drop 8 percent within a year.





Source



Add your comment
  Anonymous comment
Nickname:
Password:
  Remember me on this computer

Title:
Send me by email any answer to my comment
Send me by email every new comment to this article





 
_________________________________________________________________________
 
Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.