A forecast out last week from the University Financial Associates of Ann Arbor says that most metro areas in the country will see prices fall below the lowest levels of the past two decades, due in large part to fear.

From the Real Estate Economy Watch website:

“It is often stated that prices decline faster than they rise because fear is a stronger emotion than greed. This certainly proved to be the case in Detroit where 10 years of real price gains were erased in just 4 years,” said UFA in its most recent UFATM House Price Forecast.

“Detroit metro was the canary in the coal mine this cycle, with falling house prices arriving earlier than in other metros,” said Dennis Capozza, who is the Dykema Professor of Business Administration in the Ross School of Business at the University of Michigan, and a founding principal of UFA. “Other metros that have already or will soon converge to pre-bubble real prices include Las Vegas, Phoenix, the inland California metros and many south Florida metros.”

UFA’s prediction would take the national median price of a home in most markets below $101,000, the national median in 1990, according to the Census Bureau.

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