More reports show that the housing slump is nowhere near its end. CNN.com recently reported that pricing drops are falling as much as 30% in just the next year. You not only better know how to do a short sale but you better align yourself with as many professionals as possible because you may not be able to handle the flow. This is not one of those markets where people are choosing to sell in many and most cases you will be confronted with homeowners that are distressed, over worked and under paid, and overall lacking direction because of all the information available out there. The numbers are now in for something that we have been saying for a long time and that is why we’ve been working at processing short sales and all loss mitigation options for almost a decade now.
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- By Les Christie, CNNMoney.com staff writer
- On 11:07 am EDT, Tuesday October 20, 2009
If you thought home prices were bottoming out, you may be wrong. They’re expected to head a lot lower.
Home values are predicted to drop in 342 out of 381 markets during the next year, according to a new forecast of real estate prices.
Overall, the national median home price is predicted to drop 11.3% by June 30, 2010, according to Fiserv, a financial information and analysis firm. For the following year, the firm anticipates some stabilization with prices rising 3.6%.
In the past, Fiserv anticipated the rapid decline in home-sale prices over the past few years — though it underestimated the scope.
Mark Zandi, chief economist with Moody’s Economy.com, agreed with Fiserv’s current assessments. “I think more price declines are coming because the foreclosure crisis is not over,” he said.
In fact, those areas with high concentrations of foreclosure sales will experience the steepest drops, according to Fiserv. Miami, for example, is expected to be the biggest loser. Prices are forecast to plunge 29.9% by next June — after having already fallen a whopping 48% during the past three years.
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In Orlando, Fla., the second-worst performing market, Fiserv anticipates a 27% price collapse by June 2010, followed by a less severe drop the following year. In Hanford, Calif., prices are estimated to drop 26.9% and continue falling 9.5% in 2011; in Naples, Fla., they’re expected to fall 26.8% and then flatten out.
Other notable losers include Las Vegas, where prices have already fallen 54.6% and are expected to lose another 23.9% by June 2010. In Phoenix values have already collapsed by 54% and could fall another 23.4%. In both cities, Fiserv anticipates the losses to continue into 2011, but they will be less than 5%.”
Read More here: http://finance.yahoo.com/news/Homes-About-to-get-much-cnnm-699910894.html?x=0
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