AgentMarkets & Economy

Real estate prices to fall at least 5% in 2011?

Housing optimists can't deny market indicators

For most metro areas, home prices peaked some time in 2006 and except for a few minor bumps, it's been all downhill ever since. 2010 has been no exception. So, if we tally up all the annual sales data since 2006, it's been a four-year run of bad news regarding the direction of housing values. Enough is enough, you say, and we should begin 2011 with renewed optimism and vigor. I got your back there, but it's a weak defense, because intersecting trend lines, including an unexpected, but very strong post-tax credit slump and a shadow inventory problem will keep housing prices heading in the same direction -- down. Expect another 5 percent to 10 percent decline in housing prices in 2011. Standard & Poor's credit analyst Erkan Erturk tries to stay optimistic when it comes to reporting about the housing market. "Looking at where we are today as compared to the days of 2008 through mid-2009 when home-price indices (S&P/Case-Shiller) were showing over 10 percent decli...

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