Home Prices to Decline: First Time Since Depression
Moody’s economy.com has released a report called “Housing at the Tipping Point,” which suggests that by this time next year, real estate prices in more than 100 of the nation’s 379 metropolitan will show a “significant probability of decline”. Furthermore, that the median home price in the U.S. will decline approximately 3.6 percent. If so, it will be the first time since the Depression that home prices have declined.
The report predicts that roughly 20 city markets will “crash” next year, experiencing price declines in the double digits before leveling off in 2008. The most serious price slides are expected in Phoenix, Las Vegas, Washington, Detroit, southwest Florida, and numerous California metro areas.