July 12, 2024

home prices
home prices

According the US Housing Market Monthly report by Capital Economics released yesterday, home sales have yet to hit the trough of the recession.

Further, the economics firm states that pending home sales will do little to push home sale numbers higher. In fact, the number of pending home sales is so diminished, down 32% in the wake of the tax credit expiration, that existing sales will only dip in the coming months as these mortgage agreements are finalized.

Analysts at Moody’s Investors Service agree, stating that the odds of a near-term double-dip recession increased to one in four from one in five predicted this spring. If this double-dip happens, Moody’s estimates home prices will fall along with sales   an estimated 20% before stabilizing in early 2012.  However, mortgage tech company Fiserv,  predicted only a 4.9% decrease in housing prices over the next 12 months.

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