The U.S. housing market isn’t expected to turn the corner toward recovery until sometime next spring, according to a new forecast based on Fiserv Case-Shiller indices. Home prices are expected to decline slightly through the end of this year, then begin a consistent incline in the early months of 2013.
Home Prices Continue to Drop
The new report issued has revealed that the fluctuation in home prices that has been witnessed over the past few months are set to continue through the end of the year. But mostly, we can expect to see a decline in prices.
The financial analytics firm, which tracks 384 markets across the nation, shared eight out of the 10 markets that saw the biggest price increases over past year — Detroit, Miami and Phoenix — are projected to fall the most over the next year.
And, on the whole, Fiserv forecasts that home prices will likely dip another 1 percent between March 2012 and March 2013.
U.S. Housing Market to Rebound in the Spring
The good news is Fiserv sees the light at the end of the tunnel. According to the report, after months of fluctuating prices, the U.S. housing market will begin to rebound. The firm is forecasting nationwide home prices will jump 5 percent between March 2013 and March 2014.
Unfortunately, some states won’t find luck with recovery as quickly as the rest of the nation. In Florida, several cities are expected to see continued drops in prices for another two years. The Naples area will see a price decline of 14 percent during the 24 months ending March 2014.
But other cities are expected to see their home prices lift during the same period. With the supply of homes for sale and foreclosure properties having already dropped to their lowest level in years, fewer empty homes in neighborhoods will help prices increase.