Principal limits have been cut and without housing values stabilizing, seeing record growth in 2010 is going to be a challenge.
Unfortunately, a new forecast of real estate prices from Fiserv estimates that home values will drop in 342 out of 381 markets during the next year. Overall, the national median home price is predicted to drop 11.3% by June 30, 2010, with some stabilization for the following year with prices rising 3.6%.
Mark Zandi, chief economist with Moody’s Economy.com, agreed with Fiserv’s current assessments and told CNNMoney that, "I think more price declines are coming because the foreclosure crisis is not over," he said.
In fact, those areas with high concentrations of foreclosure sales will experience the steepest drops, according to Fiserv. Miami, for example, is expected to be the biggest loser. Prices are forecast to plunge 29.9% by next June — after having already fallen a whopping 48% during the past three years.
If Fiserv’s forecast holds, Miami real median home price will tumble to $142,000 by June 2011.