Today’s Talking Point 10/23/09
Where Are Prices Actually Headed?
From Yahoo Finance:
According to Fiserv, a financial information and analysis firm, home prices are predicted to drop in 342 out of 381 markets during the next year.
Overall, the national median home price is predicted to drop 11.3% by June 30, 2010.
Fiserv has a history of making bold predictions regarding price declines. However, in the past their predictions, if anything, have proven to be conservative.
Mark Zandi, chief economist with Moody’s Economy.com, agreed: “I think more price declines are coming because the foreclosure crisis is not over.”
Mr. Zandi, was much more optomistic in his analysis just a few months ago. The foreclosure situation is escalating at a rate no analyst predicted.
There is no doubt in my mind that prices are still under tremendous downward pressure. Let’s sit down with our sellers and tell them the truth and trust their intelligence.