NEW YORK (AP) -- Moody's Analytics recently forecast that housing prices will decline though the middle of next year, with some areas harder hit than others.
The worst declines will occur in markets with the largest supply of bank-owned homes like Las Vegas, Fort Lauderdale, Fla., and Riverside, Calif. The more moderate drops will come from Austin, Texas, and Albany, N.Y., where home prices have been more stable than the national average, Moody's said.
Moody's Analytics expects the number of bank-owned homes will peak early next year at 971,000, an increase of 16 percent over 2010.
Figures recently released by the National Association of Realtors underscores the grim outlook for housing.
Sales of previously owned homes fell 2.2 percent last month from September. That was a weaker performance than expected and comes after two straight months of gains. The rate of sales had plunged to a 15-year low in July.
The Realtors' economist also predicted that sales for the year would total 4.8 million, or 7 percent below last year's pace. That would be the worst showing since 1997.
Would-be homebuyers are sticking to the sidelines because they are worried about jobs or can't qualify for a loan, despite the lure of the lowest mortgage rates in decades. Others are trying to sell their own homes first before purchasing another.
Published: Mon, Nov 29, 2010
