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Experts say prices will continue decline into 2011

December 29, 2010 - While those trying to sell their homes might not want to hear it, interested buyers might be pleased to know affordable relocation conditions are expected to persist into the new year.

In a survey of economists, real estate analysts and investment strategies, MacroMarkets revealed that most expect national home prices to continue to decline into 2011. Gauging the predicted track for home values over the next five years, experts said prices would fall by a mean 0.17 percent next year before climbing 1.94 percent in 2012 and 2.86 percent a year later. By 2015, homes should be gaining around 3.67 percent in value, meaning those moving into low-priced homes today might reap the benefits in the form of increased equity in five years.

"The survey data we collected this year have consistently pointed to price stability in the intermediate- to long-term, which is reassuring," said Terry Loebs, MacroMarkets managing director. "However, most experts foresee a longer road to recovery, and materially lower price performance in the coming years than they did just a few months ago."

Other experts have made similar predictions. Stan Humphries, chief economist at Zillow.com, told Bloomberg that those packing their moving boxes and buying new homes in the near future should expect prices to fall between 5 and 7 percent before bottoming out in late 2011.
 

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