Friday, November 19, 2010
Home prices not done falling
MADISON, Wis. (11/17/10)--Look for home prices to slide perhaps another 7% between now and midyear 2011, according to FiServ, a market analytics company based in Brookfield, Wis.
If that forecast is right, home prices nationally will have dropped 34% from their peak by the time they hit bottom.
For as many as three million Americans, the dream of owning a home has faded. Home ownership has declined from its peak of 69.1% in 2005 to 66.9% today (CNNMoney.com Nov. 2). Additionally, the vacancy rate among homes designated owner-occupied is 2.5%.
Despite low mortgage rates, which averaged 4.3% in September for a 30-year fixed rate and 3.8% for a 15-year rate, "people aren't going to be in the market if they can't find jobs--or feel insecure about keeping their jobs," says Susan Tiffany, CUNA's director of consumer periodicals.
If you're in position to leverage today's low rates, Tiffany has these suggestions:
To read the entire Home & Family Finance article, click here.