Expect Housing Prices to Drop More

We’ve all seen the prices in the housing market drop across the country. No location was left untouched by the loan and mortgage scandal and many economists are predicting that home prices will drop even more during the next year.

Many housing reports offer differing forecasts, with some predicting that prices have stabilized. But other reports say the foreclosure crisis isn’t over yet and areas with a high concentration of foreclosures will see the steepest price drops.

The idea that the housing market had reached rock bottom and things were starting to improve is due, in part, to the $8,000 new homeowner tax break that many new buyers have taken advantage of. This tax credit encouraged people to shop around for houses and made home buying a reality.

However, does this increase in activity truly indicate the prices have leveled off or will this activity cease once the tax credit expires on December 1, 2009, thus causing prices to dip lower?

To read more about the continued housing price drop, click here.

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About reibrain

Hey, my name is Trevor and I'm the founder of The REI Brain and a real estate investor since the age of 21. Right now, my focus in real estate investing is multi-family income properties and I have plans on moving more into the commercial real estate investment world in 2008 and beyond.

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One Response to “Expect Housing Prices to Drop More”

  1. Brian October 22, 2009 at 11:00 pm #

    Hi Trevor:

    Great Article!

    I am advising all my coaching students to have lease option sandwiches to have their exercise prices at “new appraisal” in 24 to 36 months.

    Best to you at the “REIBrain”,

    Brian – REISkills2.com

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