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House Prices to Fall Over Next Six Months

In a normal real estate market, it may make sense to wait for the spring buyers’ to appear before placing your house up for sale. The current real estate market is anything but normal however. The increase in supply of distressed properties will overshadow any increase in demand for housing over the next 6 months. This is reflected in the findings of two groups: Clear Capital and JPMorgan Chase.

Dr. Alex Villacorta, Director of Research and Analytics at Clear Capital explained last week:

“The housing market has yet to demonstrate the fundamentals necessary to overcome a seasonal slowdown over the next six months, which drives our projected 3.2 percent drop in national home prices through the first quarter of 2012.”

HousingWire quotes analysts at JPMorgan Chase:

“Home prices could dip another 6% to 7%, before hitting rock bottom in early 2012.”

Bottom Line

If you are thinking of selling, it would be wise to put your house on the market before prices fall again.

 


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8 replies
  1. Judi Gray
    Judi Gray says:

    I am always concerned when I read these predictions. I live and sell in the DC area market- specifically Northern VA- and we do not expect home prices to fall. In fact, our local market has seen a price increase from 2010 thru 2011, and many local experts expect that to continue. I would like to see articles point out that real estate is LOCAL and some markets are not losing values.

    Reply
  2. Katy
    Katy says:

    True, how can the author paint such a broad brush? Even within a regional market, there are many micro-markets, some of which are doing well, others of which are doing poorly.

    Reply
  3. Jason Gentry
    Jason Gentry says:

    I couldn’t agree with you more, Judi and Katy. As a real estate agent we have to constantly remind ourselves we are the professionals working in the trenches and we know our LOCAL markets way better than these “experts.” We must also continue to educate people on home ownership … its positives and negatives. Keep questioning sensational news media; it’s the worst!

    Reply
  4. Janice Lewis
    Janice Lewis says:

    Hi all,

    I would be curious to know whether your increased sales price reflects a true price per square foot increase or if you look more closely does it show buyers are getting more house for the money, a reduction in price per square foot.

    Reply

Trackbacks & Pingbacks

  1. […] in regards to picking a list price for your home. You waste time and lose money in this type of declining (yes, still declining!) market. Its a buyers’ market, so there are tons of homes currently on the market that are your […]

  2. Hello world! says:

    […] in regards to picking a list price for your home. You waste time and lose money in this type of declining (yes, still declining!) market. Its a buyers’ market, so there are tons of homes currently on the market that are your […]

  3. […] In a normal real estate market, it may make sense to wait for the spring buyers’ to appear before placing your house up for sale. The current real estate market is anything but normal however. The increase in supply of distressed properties will overshadow any increase in demand for housing over the next 6 months. For the full article, click here. […]

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