This article from CNN/Money reports that home prices in most U.S. metro markets will continue to decline for the next 18 months or so.
“According to an analysis conducted by Moody’s Economy.com, declines will exceed 10 percent in 86 of the 379 largest housing markets. And 290 of the cities will experience price drops of 1 percent or more.”
Prices in the Los Angeles market are predicted to fall 10.6 percent between now and the first quarter of 2009. But in 39 other markets, prices are expected to drop even more. The area unfortunate enough to receive the No. 1 designation is Stockton, Calif. (25 percent), followed by Palm Bay-Melbourne-Titusville, Fla. (24.9 percent) and Sarasota-Bradenton-Venice, Fla. (24.8 percent).
Is anywhere safe? Well, you could take your California downpayment money to Texas.
“The markets where Moody’s is forecasting growth generally have one thing in common: Home prices in these cities are quite low. The top appreciating market will be the Brownsville/Harlingen area in Texas, forecast to rise by 7.9 percent between July 2007 and the end of 2009. The median single-family home price there is less than $120,000.”