by Liz Benson
The chief economist from MoodysEconomy.com predicts a price decline for most of the country with only Pittsburgh seeing a home price increase – by a modest .41%. His prediction for Denver – a decline of 2.79% in 2010 followed by an increase of over 3% in 2011. He seems to think the market will improve, but it may take another year of declines before we get there.
His main reasons: a backlog of foreclosures that will be hitting the market next year and the phase out of government incentives like the home buyer tax credit (April 2010) and the Fed’s increased purchase of mortgage backed securities (March 2010).
So far, Boulder has been less affected by foreclosures than many surrounding communities, but his prediction of significantly higher interest rates could deter buyers here as well.
Loads of economists make predictions, why should we listen to this guy, you may ask? For 2009, this particular economist, Mark Zandi, forecast a 14.5% decline on average nationally. It looks like the year will come in at 13.2%, so he was prettty close.
Although the news is less than ideal, our area is still predicted to do much better than most other areas of the country including Miami, Florida where he predicts a 32% price decline in 2010 – ouch!
Read the full article with predictions for 100 cities at http://money.cnn.com/2009/12/08/real_estate/housing_outlook.fortune/index.htm
blog by elephant’s Realtor – Liz Benson