Housing prices to see big fall in 2008?
Thinking of selling your home? You might want to wait a year – or two.
Housing Predictor, a forecaster that tracks a total of 250 housing markets in all 50 states, says that home prices will fall at record rates in 2008.
The national forecaster is predicting that home prices will drop in the majority of markets in all 50 states. Some markets, especially those in highly populated states that formerly saw record appreciation during the real estate boom, will see prices plummet at double-digit levels in 2008, Housing Predictor said. The loss in average home values is expected to be the worst since the 1930s, according to Housing Predictor analysts.
The culprit, according to the forecaster? It’s the usual suspect: overly creative financing by mortgage companies, which has led to too many buyers taking out mortgages they can no longer afford.
The report is just one more piece of bad news for the residential real estate industry. It’s also more evidence that the housing slump is no short-term problem. The industry’s woes are going to be with us for a while. It’s best to get used to it.
I recently sold a property in August and I am very glad that I did. Just four days after I got a contract, the same unit went for $5000 less than mine. I witnessed the tipping point of the market first hand in that local. It’s good advice for sellers to wait, if they can, and ride out the coming downturn.
Hi, Ali:
We sold our house about two years ago. I feel like we got lucky, especially since the community we were leaving now has a glut of available houses on the market.