National Housing Prices Forecasted to decline 2.4 Percent

Going down - BSN

(Best Syndication News) - Clear Point have released their second half of 2011 forecast for US housing prices, and they anticipate the national average home value will decline another 2.4 percent by the end of the year. Not all areas are as hard hit as others are. Some metropolitan areas have forecasts of gains. The Clear Capital Home Data Index Market Report tracks real estate sales and property values.

Five metropolitan areas have been forecasted by Clear Point as having an increased real estate valuation. Those cities are San Francisco, California; New York City, New York; Washington D.C.; Orlando, Florida, and Dallas, Texas.

Clear Point forecasts a 7 – 10 percent decline in housing prices in Minneapolis, Minnesota; Cleveland, Ohio; and Virginia Beach, Virginia.

Southern California home prices were forecasted as staying the same or losing up to 2 percent in home price value.

The Midwest suffered on home prices due to Detroit homes losing 20 percent of their value during the first six months of 2011.

Mortgage loan interest rates remain at historic lows. According to Freddie Mac’s Primary Mortgage Market Survey for the week ending on July 7, 2011, a 30-year fixed-rate mortgage loan with an average 0.7 point had an average 4.60 percent interest rate.

One problem is the unemployment rate remains at 9.2 percent for the month of June according to the report by the US Department of Labor’s Bureau of Labor Statistics. Without a job, even the most affordable housing remains out of reach for some potential home-buyers.

The other problem remains with home foreclosures still plentiful in the housing market. A report on June 9, 2011 by Janet L. Yellen, Vice Chair, Board of Governors of the Federal Reserve System at the 2011 Federal Reserve Bank of Cleveland Policy Summit in Cleveland, Ohio said, “In total, 2-1/2 million foreclosures were initiated in 2010, and a similar number of foreclosure starts are expected in 2011.”

By: John Waters

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