More downward motion for home prices in 2009?
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If you’re already planning for the New Year — and frankly, after the way things have gone financially in 2008, who can blame you — you might want to check out the forecasts from CCNMoney.com that commenter ‘TK Bruin’ called to our attention, including the one entitled ‘Your Home.’
... 18.6 million homes in this country are now sitting vacant, more than at any other time since the Census Bureau began tracking that figure in the 1960s. And ... 2.8% of U.S. mortgage loans are now at least three months in arrears, up from 1.4% a year ago. That rate is projected to peak in early 2009. But if a recession lasts for three-quarters of the year, as some economists are predicting, the number of foreclosures could remain high longer. Add it all up and you have another lousy year for real estate.
How ‘lousy’ specifically is detailed in the accompanying number-crunched chart from Moody’s Economy.com projecting the median home price change at the end of 2009 for the nation’s 10 biggest metro areas with the percentage of price change from the end of 2008 to the end of 2009:
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Yep, coming on top of this year, that would be lousy — especially for Washington, Los Angeles and Miami.
— Lauren Beale
Thoughts? Comments?