June 8, 2007
Big Drop in Home Prices Predicted
Big Drop in Home Prices Predicted
Many industry watchers agree that home prices will continue to slide before they recover, but now some economists say they've got a long way to fall before bouncing back.
David Wyss, chief economist at Standard & Poors, has forecast a price drop of about 8 percent for the 24-month period through the fourth quarter of 2008. Overall, he said he expects the U.S. economy to slow this year to a growth rate of about 2.25 percent, down from 3.3 percent last year.
The National Association of Realtors (NAR), is predicting a much less severe total decline of 1.4 percent through the slump - prices have already declined three straight quarters - and that a recovery will start to take place in early 2008.
Only by looking back a year from now we will really know who's right. Irregardless, taking the slide in home prices into consideration, now could be your best chance to find a great price on a home. We'd love to discuss the current market conditions with you. Give us a call or contact us by leaving your comment below.
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