Home Price Decline Nears Bottom
October 29, 2009
The decline in national home prices should hit a bottom next year, but many markets could still experience huge volatility as the housing industry seeks to emerge from its worst downturn since the Great Depression, according to economists appearing last week at the NAHB Fall Construction Forecast Conference.
Consensus expectations from the Wall Street Journal Economic Forecasting Survey are for home prices to reach their trough by mid-2010, said Richard Brown, chief economist at the Federal Deposit Insurance Corporation.
Citing data from the S&P/Case-Shiller Composite 10-City Index and its Futures Prices Index, Brown said home prices have declined 31.6% from their peak and are expected to fall another 4.1% through May 2011 followed by a price rebound of 7.8% over the next two years. (continued)
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