Home price predictions for 2010

Housing Market ChartWill home prices continue to fall in 2010?

Although nobody has a crystal ball some research groups are predicting continuing declines in the overall marketplace.

And some are predicting a very modest increase.

I find it interesting that “Housing Experts” have such a varying degree of opinions.
So much so one wonders who to believe.

  • Fiserve Lending Solutions is predicting an average of 11.3% decline in the 342 of the 381 markets it covers.
  • Moody’s Economy site foresees another 8% drop in California, Nevada, Arizona and Florida.
  • Sheri Olefson, author of “Foreclosure Nation: Mortgaging the American Dream,” predicts a nation average decline in prices of about 10% in 2010.
  • Chief Economist for the National Association of Realtors Lawrence Yun predicts home prices will rise more than 3% in 2010.
  • California Association of Realtors president James Liptak predicts a 3.3% rise in median home prices.

Somehow I think the both the National and California Association of Realtors is out of touch with the reality of our economic situation. With rising unemployment, consumer uncertainty and the challenges consumers have getting loans it is difficult to have faith in such predictions.

Maybe they are not reading the newspaper.

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