When will the housing slump be over? Home prices dropped significantly in the second quarter of the year 2010. Many areas are still struggling to come back. Plenty of short sales and foreclosures continue to hit the market on a daily basis. Even with the interest rates being at a record low, homes are still not selling. The lending standards have become much tighter.
The home buyer tax credit is over. This was a tool for supporting the housing marketing and prices. People are still out of jobs. The market won’t come back until we get people back to work. The housing market is the worst it has been since the Great Depression.
Economists believe the housing market will not begin to recover until home prices fall far enough to revive demand. As for now, predictions are that the prices have not hit bottom yet. Most experts think they are going to drop more.
Moody’s Economy.com chief economist Mark Zandi told CNNMoney.com home prices will fall between 5 and 10 percent more in some areas of South Florida. Zandi expects home prices to plummet 30 percent in 2010.
Robert Shiller, professor of economics at Yale University and co-developer of Standard and Poor’s S&P/Case-Shiller Home Price Indices, told Reuters that while he does not give quantitative forecasts, the futures market indicates the downward trend in home prices is far from over.
Will we see the prices continue to drop in 2011 and possibly 2012? We will have to keep an eye on the market.
Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL – email@example.com