RISMEDIA, Nov. 8, 2007-The U. S. housing market, already stressed by mortgage challenges, will experience falling home prices at a record rate in 2008, according to the new annual Housing Predictor national forecast.
Home prices are forecast to drop in the overwhelming majority of markets in all 50 states. Housing Predictor independently tracks more than 250 local housing markets in all states and regularly reports changes in each market place to keep visitors up to date on local market conditions.
Some markets, especially in highly populated states, which experienced all time record high appreciation during the real estate boom will see prices plummet at double digit levels in 2008. While others will see less depreciation. The loss in average home values is expected to be the worst since the 1930’s, according to Housing Predictor analysts.
The deflation being experienced in most of the nation’s housing markets is a result of low mortgage interest rates, overly creative financing provided by mortgage companies and massive mortgage fraud on the part of both mortgage brokers and some home buyers. The series of issues has stalled home sales in the majority of the country after prices in many areas reached all-time highs and has resulted in sales activity of less than a third of the number of sales in 2006.
All real estate markets are local in nature with their own regional economic and political influences, which drive the local market place. Some areas in the Pacific north-west and in southern states will experience less deflation in 2008.
Housing markets that cater to second home and vacation buyers may have already bottomed out in areas of Florida and Idaho. However, Florida also has one of the highest rates of foreclosures in the nation, due in part to over building in the Miami condo market. Miami has seen more new condominium projects constructed in the past few years than ever before in the city’s history, and many other projects have been canceled or put on hold until market conditions improve. For more information, visit http://www.housingpredictor.com.