How Low Can Home Prices Go?
Home prices have been at all time lows, having dropped 6% over the past four quarters (which ended June 30). But according to analysts at Fiserv, they might have not hit bottom yet. They believe we could see an additional 3.6% fall by the second quarter next year.
They do see the housing market soon stabilizing in 2012, predicting that a 2.4% increase in home prices could be seen by the end of the second quarter in 2013. However, large inventories of foreclosed properties need to be absorbed before we can see the housing market fully restored. Currently, foreclosure filings rose 7% in October since September of this year; however this is still a 31% decrease from where we stood at this time in 2010.