Photo: Rootology via Wikimedia
Everyone thought that when the housing crisis hit, it wouldn’t hit hard in “stable” US cities like Seattle and Minneapolis. No one thinks that anymore. The New York Times reports:
In the last year, home prices in Seattle had a bigger decline than in Las Vegas. Minneapolis dropped more than Miami, and Atlanta fared worse than Phoenix.
And it’s likely to get worse before it gets better.
….”So many sellers are waiting in the shadows,” said (Seattle real estate brokerage) Redfin’s chief executive, Glenn Kelman. “The inventory is going to expand and expand and expand. I don’t see any basis for significant price increases.”
While almost every economist is expecting another round of price declines for the next few months, many see a levelling off in the second half of the year. Fiserv, the company that produces the monthly Case-Shiller Home Price Indexes, analysed prices in 375 communities. About three-quarters of them will be stable by December, Fiserv calculates.
“We’re at a period near the bottom but with more volatility than we normally see at this point,” said David Stiff, Fiserv’s chief economist. “This sort of double dip is unprecedented for housing.”
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