According to Fiserv, a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35%, below the peak reached in early 2006. Should this prediction occur, it would make it the most substantial decline for home prices since the housing bubble burst in 2009. Several factors have attributed to the continued decline in housing prices, including an increase in foreclosure activity and sustained high unemployment.
Naples, FL is expected to take the biggest hit of any metro area. Fiserv predicts a price drop of another 18.9% by the end of next June for Naples, FL. Home prices in this area have already fallen 61% from the peak. Other cities expected to be hit hard include Las Vegas, Riverside and Salinas, CA, and Miami, which is expected to decline by 13.2% (total loss: 57%).
What can we expect from a housing market that continues to surprise all of those involved? Economists and housing experts predict a slow recovery. Even after the housing market begins its comeback in mid-2012, the recovery is predicted to be modest at best. Nationwide, Fiserv is projecting that home prices will climb just 2.4% between June 2012 and June 2013.
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