Home prices are headed for yet a third bottom, their lowest yet, says a new report by financial analytics company Fiserv.
CNN Money reports that the company says that prices will fall yet another 3.6% by June. That’s 35% below their 2006 peak value.
This new trough isn’t even the lowest they can go. There is a huge what is called “shadow inventory” of foreclosures. They’re called “shadow inventory” because they’re not on the market yet. There’s over 6 million homes sitting in this dark pool, waiting. If they flooded the market all at once, home prices would plummet.
The areas of the country most vulnerable to another decrease in prices are the ones where the bubble blew up the biggest and popped the loudest. We’re talking the usual suspects, California, Las Vegas, Florida and Arizona. For some areas, the recovery may not come until mid-2012, and even then only in dribbles. Other areas will see their prices continue to decrescendo through 2013.
So if you’re waiting for home prices to recover before selling your house, better extend your timeline, or cut your losses and get out now.
Home prices heading for triple-dip [CNN Money]