Moody’s Report Says Real Estate Prices to Bottom in 2012

According to Moody’s Analytics and Fiserv, Inc, price declines will end and average U.S. home prices will stabilize in some areas by Labor Day. According to the study, prices in some of  the hardest-hit markets will start to level by the end of 2012. The prediction was based on home price trends in 375 markets around the county that are tracked by the FiservCase-Schiller Indexes.

The Fiserv report states  that home prices have fallen to pre-bubble levels, creating affordable housing relative to income which, coupled with a gradually improving economy, will bring an end to price declines.

Decreasing  home prices have greatly improved home affordability for the average American. Relative to household income, affordability is at or close to pre-bubble levels in nearly every metro area across the U.S. This news, combined with a recovering economy, leads Fiserv and Moody’s Analytics to project that average U.S. home prices will stabilize in the third quarter of this year and will level out in the hardest hit areas by the end of 2012. The predicted stabilization will occur in the last quarter of this year with a 3 percent decline expected for the first half of 2011.

Consumer confidence is the key to the real estate recovery as  confidence in housing markets is a by product of increasingly stronger job gains and a falling unemployment rate.  As consumers feel better about the economy, they will  buy houses and the downturn will begin its upward journey. 

Even as the housing market returns, Fiserv Case-Shiller data forecasts the pace of recovery will be uneven across U.S. metro areas with recovery lagging in some parts of the country.

With the second and vacation home market being one of the bright spots in this economy, anyone looking for a home in Big Canoe might want to accelerate the process as the current bargains will not be here forever. The biggest real estate sale in history looks as if it might be just that-history. Don’t miss this opportunity to own a vacation home at a discounted price. Contact me for showings and more info. Shelby Collins 404-863-2676