Outlook For Home Prices – Dim
Investors, don’t expect home pricing to increase anytime soon. Recent events indicate that real estate values will stay flat or even decline further.
Why the gloomy forecast? Let me count the reasons:
1. The FHA has banned down-payment grants that have traditionally been paid for by home sellers.. That is a serious blow to owners of lower priced homes. Fewer people will be able to afford those homes. Fewer buyers mean downward pressure on home values.
2. Those having trouble making their mortgage payments may get some relief as provided for in the recently enacted housing bill. The emphasis should be placed on “may get some relief.”
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Posted by Carlos Sagastume on August 24, 2008. Filed under HUD Homes.
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