Experts can’t agree where home values will be later this year.
There are so many variables to consider: interest rates, foreclosures and unemployment to name a few.
That is why it is amazing to see a new report which not only looks at this year but also predicts when housing values will return to the peak prices of 2005-2006. Fiserv teamed up with Case Shiller to examine different parts of the country and determine when those regions will rebound to the prices we experienced at the height of the market.
In a press release titled "For Many U.S. Markets, the Return to Peak Home Prices Will Be a Long, Slow Road", they state where prices are headed this year and they map out certain regions and estimate when these markets will return to peak values.
What will occur with prices this year?
According to the report:
Nationally, data points to a further seven percent decline in home prices through the end of this year, with a prolonged recovery beginning early in 2011.
In many markets, the emphasis is on the word ‘prolonged'.
We see several powerful forces in the market that will severely hinder the housing recoveries of many metro areas, particularily in the hard-hit states of California, Florida, Arizona and Nevada. It will take these markets 15 or more years before home prices climb back to their peaks.”
When will prices return to peak values?
Here is the map that accompanied the press release:
What does this mean to you?
If you are thinking of selling but want to wait for peak prices to return, check out the map. If you are thinking of buying, check out when you can expect your market’s prices to reach top dollar again.
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