When Will Home Prices Hit Bottom?

Our crystal ball has predicted a continuing decline in home values in the majority of markets. When will we begin to see some improvement?

According to First American CoreLogic prices will decline through the winter and then, spurred by lower unemployment rates and lower housing resales inventory, the prices will begin to bounce off the bottom in March. First American CoreLogic expects 45 of the largest housing markets to decline 4.2%, a little less drastic a prediction than that of Deutsche Bank, which we reported a week or two ago expected a decline of 10 to 12%. First American CoreLogic projects a 1% year-over-year appreciation by October 2010.

Which projection should you follow? It depends on the details for your specific market. Make sure that if a decline is expected in your market you figure those projections into your Short Sale offers. On average the Short Sale will take three or four months to complete, and may take longer.