Thursday, April 29, 2010

Price To Fall Another 3% to 5%

Daily Real Estate News

April 29, 2010

Investment Bank Predicts Rising Foreclosures

Foreclosed homes owned by banks, Fannie Mae, Freddie Mac, and other mortgage investors topped 480,000 at the end of February, Barclays Capital estimates in a new study.

Barclays expects housing inventory to rise further over the next 20 months, peaking at 536,000 homes in January 2012. Barclays also predicts 1.6 million sales of distressed properties in 2010 and 2011, declining to 1.5 million in 2012, with about 30 percent of all home sales this year and next foreclosure related. Normally, only 6 percent of sales are related to foreclosures.

Barclays also expects home prices to fall another 3 percent to 5 percent over the next two years, assuming that unemployment will decline to 8 percent within the next two years.

Source: The Wall Street Journal, James R. Hagerty (04/28/2010)

Copyright National Association of REALTORS®. Reprinted with permission

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