Home Prices – Bottom in 2010?
by Tom on July 27, 2009
in house prices
Part of me says that this report might be pretty accurate but another part of me says that it’s missing some important components. Let me explain:
- The concept of housing prices bottoming next year sounds pretty accurate to me. I think by then we’ll see a lot of the credit issues working towards a resolution and as we commented in the post earlier today about Bernanke and and jobs market, we’ll probably see unemployment stabilize if not shift downward.
- This report talks about predominantly the relationship between house prices and average incomes. It doesn’t factor in the shift in people’s attitudes towards debt, attitudes towards homeownership, attitudes towards savings and their ability to be comfortable with taking on the obligations of homeownership compared to renting. That’s the part that says to me it could be a bit longer in most areas until we see a bottom in housing prices.
Stay tuned, it’s going to be interesting.
Tom Vanderwell
Home Prices Fall 19% Toward a 2010 Bottom : HousingWire || financial news for the mortgage market
“Housing affordability is quickly being restored in many markets and the pool of buyers who can afford to purchase homes is increasing at a rate not seen in recent years, setting the stage for home price stabilization,” says David Stiff, chief economist at Fiserv, in a corporate release.Stiff added: “Over the next year, Fiserv forecasts that national home prices will drop another 11%, and bottom out in early 2010.”
But Stiff warned that the recovery will be tentative. A lack of confidence in a poorly performing economy, limited access to mortgage credit and large inventories of foreclosures will continue to anchor prices, Stiff said in the release.
