Fiserv Home Prices: Median Home Prices to Drop until July 2010?

All we have been hearing about in the news is that home prices are bottoming; the Fiserv home price data disagrees as the firm predicts the national median home price will drop until July 2010.  The financial information and analysis firm projects a drop of 11.3% in median home prices by June 30, 2010.  After this drop, Fiserv predicts home prices to stabilize and actually rise 3.6% the following year.

Fiserv did a great job of predicted the historical decline in home prices in the past although it underestimated just how sharp prices would fall.  Overall home values are predicted to drop in 342 of the 381 markets over the next year.  The areas that have a high number of foreclosures are expected to have the steepest declines when it comes to the drop in home prices.

Miami, Florida is expected to see the biggest drop as forecasts so another dive of 30% by next June.  This comes on the heels of a 48% drop since the housing market top of July 2006.  Other markets that are expected to see a sharp drop in home prices include Las Vegas and Phoenix.  Las Vegas is expected to see another 24% drop while Phoenix is expecting a 23% drop.

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Author: Alan Lake