The Hits Keep Coming!
By the end of the year, financial-services-technology firm Fiserv expects housing prices to stabilize in two-thirds of metropolitan areas, according to the latest analysis of home prices in 380 U.S. markets – based on the Fiserv Case-Shiller Indexes, released Tuesday. That number will increase to 95% of all metro areas by the first quarter of 2013.
“Relative to family income levels, the average U.S. home is now only 5% more expensive than it was in 2000”, said David Stiff, Fiserv’s chief economist.
He added that Monday’s S&P downgrade of Fannie Mae and Freddie Mac could hurt consumer confidence, but ‘the resurgent demand for Treasuries could cancel out’ the downgrade.
During the next two years, Fiserv projects that these markets will see the biggest price increases: Tacoma, WA (24.9%), Palm Bay, FL (18.3%), Seattle (10.2%), Tucson (10.2%), and Memphis (10%).
The company also expects prices to grow in areas such as Washington D.C., San Diego, and the San Francisco Bay Area, where strong labor markets and desirable geography will prompt home buyers to get in at low prices.