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COMMENTS
Home Prices Forecast to Drop Below 2009 Values by Early 2011
By Alec Foege
Jul 30th 2010 @ 3:13PM
Jul 30th 2010 @ 3:13PM
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It's the kind of rocky horror show that everyone's been fearing. According to Altos Research, home prices will continue to decline through the rest of 2010 and start 2011 slightly lower than in 2009. The main reason for the projected drop is shadow inventory, those homes that have yet to reach the foreclosure stage but are already slouching toward default. Because the size and scope of the shadow inventory is notoriously hard to estimate, it is unclear when the subsequent housing recovery will begin. Here's hoping for a high-growth spring.More on AOL Real Estate:
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Shadow inventory...The great unknown boogieman ...could be 2 million could be 8 million.... nobody knows...course if banks can set on defaulted homes and release them gradually ,as they mostly have for the past two years, then it's 'no harm -no foul'...Also,Altos Research reported asking prices were UP in half of it's targeted cities in the same report...and if jobs come back a pentup demand could have homes sales moving into brisk territory again...Nice....