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Home Prices To Fall One More Year

Home prices are going to decline another 5% to 10% in 2010, according to Mark Zandi, chief economist for Moody’s

That’s because Zandi expects another 2.4 million foreclosures will continue to flood the market with cut-rate inventory at the same time high-unemployment will limit the number of potential buyers.

Home prices are going to decline another 5% to 10% in 2010, according to Mark Zandi, chief economist for Moody's four states with the biggest foreclosure problem — Florida, California, Arizona and Nevada — will continue to see the biggest decline in property values. The study expects home prices in Miami, Fort Lauderdale and Orlando to fall by another 30% in 2010.

Of the 100 markets in Moody’s annual forecast, Pittsburgh is the only place where home values are projected to increase next year. Yeah, Pittsburgh, go figure.

But the study projects that the great majority of cities will see home prices growing again in 2011.

“It’s clear we’re closer to the end of this crash than the beginning,” Zandi recently told Fortune magazine. “We’re moving in the right direction, and that’s reason for optimism.”

Click here to read Fortune’s story on Moody’s home value study and see charts listing the projected changes for all 100 markets for 2010 and 2011.

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Comments (2)
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2 Existing Comments
  1. Area2Fred said:
    on January 2nd at 09:47 am

    If Mortgage Companies followed a code of ethics, we could have sold through most of the Repo -inventory by now.

  2. Mike M said:
    on January 5th at 10:33 am

    Why is Pittsburgh such a shock? They’re projecting a very small increase, and last I checked, Pittsburgh never experienced the unsustainable boom in prices that areas such as CA, FL, and NV did. Their median home price is still just over $114k, making the city very affordable. Why should their prices collapse just because fools were paying $800k+ for shacks on postage-stamp lots in mediocre areas of LA and those prices fell?