Will home prices fall this summer 2010?

Question

No question banks are not allowing shortsale nor releasing their back inventory . will this summer be a great summer for investor and would home prices fall like summer 2007?
Please give your input?

J Scott · Answer

I think many markets won't see a bump until next Spring, but I'm not sure that there is a lot of room to drop except in the big markets that saw a huge run-up the last decade.

So, for many markets (including my own), I predict small declines for the next 12 months and then a long, slow recovery...

Loc R. · Answer

Well, out in LA County where I live, a lot of people are still in denial and/or hanging on thanks to federal intervention and/or slow-moving banks.

This has resulted in prices dropping slowly than I had anticipated.

What I've learned is that it's too hard to call exactly when what will happen in the market.  Just be ready.

Ted Harris · Answer

Real estate is like the weather - each area unique ... some markets have already stabilized and showing modest appreciation (SF, Vegas) - but I'd agree most markets will show small declines thru the summer.

Rich Weese · Answer

I posted a thread with USAtoday article that said Vegas wouldn't reach its' previous high again till 2031! Prices will DEFINITELY continue falling for another year in most areas. OK appears to have stopped the bleeding. I'm getting a thread ready that you won't like. Rich

Ali Samana · Answer

I vote yes.  The tax credit had artifically kept the prices up and now that the credit is expired I believe the prices will fall.

In Corpus Christi, we were overwhelmed with inventory, but the prices were high (even though we had high days on the market).  Now that there are going to be less buyers, the sellers will have to be more realistic.