Moody's Economy.com Research reports as follows:
Despite the darkening national economic outlook and the weak conditions in the housing market, some positive signs give hope that housing is about to hit bottom. Housing in Crisis: When Will Metro Markets Recover?, a comprehensive new study, evaluates the near-term prospects for housing markets in a recessionary environment.
House prices will stabilize by the end of this year.
The national Case-Shiller® house price index will decline by another 11% from the fourth quarter of last year for a total peak-to-trough decline of 36%.
By the end of this unprecedented downturn, house prices will have declined by double digits peak to trough in nearly 62% of the nation's 381 metro areas. In about 10% of metro areas, price declines will exceed 30%.
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