Based on the article below, 2010 just might be a better time to buy than in 2009!!
Home prices to fall in 2010 - foreclosures coming
Fiserv Lending Solutions, a financial analytics firm, forecasts that prices will fall in all but 39 of the 381 markets it covers, with an average drop of 11.3%."We've seen recent price stabilization because of low mortgage interest rates and the impact of the first-time homebuyers tax credit," said Pat Newport of IHS Global Research. "But there are really good reasons to think prices will now start going down." There are three main reasons for the reversal: a coming flood of foreclosures, rising interest rates and the eventual end of the tax credits. According to Gus Faucher, the director of macroeconomics for Moody's Economy.com, the huge number of foreclosures that remain in the pipeline is the big problem. In fact, Moody's upped its estimate of defaults recently because of shortcomings of the government-led mortgage modification programs. Trial workouts are not being made permanent and completed modifications are redefaulting at high rates. "There are going to be fewer [successful] modifications than we thought." However, he says most of the price decline has already occurred and Moody's forecast is for only another 8% drop. The worst-hit markets will be the ones suffering the most foreclosures, places like Arizona, California, Florida and Nevada. Some analysts, according to Newport, also think rates for a 30-year mortgage will pass 6% next year as the government curtails housing market support. Finally, many economists see the end of the tax credit in April as a significant brake on home prices.
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