EconoMeter: Will home prices rise in 2012?
Panel forecast
overestimated 2011 increase by $21,000
Written by
Roger Showley
6
a.m., Jan. 7, 2012
Q: Will
San Diego County median home prices rise in 2012? They dropped 6 percent from
$335,000 in November 2010 to $315,000 in November 2011.
Panel's
answer: Yes 5, No 3. Consensus 2012 median: $319,300 (2011 consensus was
$336,250)
Marney Cox, San Diego Association of Governments
Marney Cox
ANSWER: NO
2011 and 2012 prediction, $300,000. Unfortunately, the
significant hurdle of clearing the excess inventory of distressed properties is
not yet complete. The foreclosure process is expected to peak in 2012 and
liquidations, the following year. This additional supply is expected to push
the median home price down 5 percent during 2012. The faster foreclosures are
processed and returned to the market for sale, the more downward pressure on
home prices and a quicker return to a normal housing market. To facilitate this
process, regulators are considering a plan to sell foreclosed properties to
investors who would renovate and rent them; preventing this correction only
delays the inevitable, pushing the construction sector recovery off into the
future.
Porama Srijinda, MBA.
REALTOR®, CIPS
Broker Associate at Keller Williams Realty.
Authorized HUD Agent. Short Sale and Equator Experiences,
Ca. DRE. Lic# 01838443
it is really important to ask for advice from realtors and attorneys when planning to buy a real estate.
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