Fitch: Home prices need to fall another 10%
Bailout News, Politics, California Housing Crash, Florida Housing Crash, The Economy, Real Estate October 20th, 2008
More bad news for the housing market. When the economy moving into a recession, Fitch ratings said today that “The rate of U.S. home price declines will slow in the coming months, though another 10% decline is in the cards before home prices begin to exhibit more stability, according to Fitch Ratings. With prices returning to early 2004 levels, Fitch believes that most of the additional 10% decline, which will bring prices back to levels seen in 2003, will occur over the next eighteen months. Fitch then expects declines thereafter to moderate.”
This is how Yahoo Finance reported the news:
U.S. home prices will fall another 10 percent before they begin to show signs of stabilizing, Fitch Ratings said on Monday.
National home prices have declined a full 22 percent from the peak hit in 2006, the agency said in a note. Fitch has a peak to trough forecast for prices to decline 30 percent.The additional 8 percent decline is equal to another 10 percent decline from current levels, it said. Most of that correction will take place in the next several quarters before prices exhibit stability in 2010, said the agency.
Prices have now returned to early 2004 levels and need to return to levels seen in 2003 before the pace of decline will moderate.
