Cheap Foreclosed Houses for Sale to Pull Down Home Prices More
The housing market has not yet recovered from the devastating effects of the foreclosure crisis and already, another bleak prognosis is coming its way again. Industry experts are predicting that the continuing increase in the number of cheap foreclosed houses for sale will pull down home prices further to a record low.
The prognosis belies expectations in the past several months that home prices are starting to bottom out. This time, the verdict is out about national home prices falling much lower. Industry experts predicted that home values will fall in 342 housing markets, out of the total 381 nationwide, before the year ends.
Similarly, the median home price nationwide is predicted to fall by nearly 11.3 percent by June 30 next year. Furthermore, it is expected that prices will start to stabilize by rising 3.6 percent sometime next year.
Economists said that more home price drops are expected because the housing market is still inundated with cheap foreclosed houses for sale, with no letting up seen in the very near future. They said that areas with high foreclosure rates will experience the biggest price drops.
For example, in Miami, Florida, prices are predicted to drop by as much as 29.9 percent by June 2010. This home price drop is expected to occur after the city already experienced a 48 percent decline since 2007. By June 2011, Miami’s median home price will plunge to $142,000.
Meanwhile, in Orlando, Florida, a 27 percent home price drop is expected by June of next year to be followed by a moderate decline the following year. Similarly, in Hanford, California, home prices are expected to decline 26.9 percent and to continue to fall by 9.5 percent in 2011.
Home prices are expected to dive by as much as 26.8 percent in Naples, Florida before it will start to flatten out.
On a lighter note, some cities across the country are expected to buck the trend. About 33 housing markets are expected to post price gains while six will remain flat. The gainers will be led by Kennewick, Washington with 8.9 percent increase since 2007 and projected 3.4 percent gain by June 2010.
Other cities that are expected to overcome the impact of cheap foreclosed homes for sale by posting home price gains are Fairbanks and Anchorage both in Alaska and Elmira, New York.
- Miami Foreclosure Properties
- Orlando Foreclosure Properties
- Hanford Foreclosure Properties
- Naples foreclosure properties
- Kennewick foreclosure properties
- Elmira foreclosure properties
Related Posts:
- Existing Homes Sales Rise, Foreclosed Houses Sales Fall
- Underwater Mortgages Driving Rise in Bank Repo Homes
- Cheap Foreclosed Properties for Sale Drove Sales in Florida
- Cheap Foreclosed Homes for Sale Aplenty in Florida
- MBA: Number of Cheap Foreclosed Properties to Keep Rising
