Tuesday, May 08, 2012 / by Nathan Clark
Though the median sales price for homes in theUnited Stateshas fallen over the past seven years in 20 of the country’s largest metro areas, a poll of economists sees that changing soon.
According to a Reuters survey of 24 economists, the Case-Shiller price index of 20 cities is expected to stay relatively flat for the rest of 2012 but begin climbing in 2013. The survey reflected a prediction that the index will increase by 2 percent next year, a forecast better than the 1.5-percent projection the survey found in January.
The analysts surveyed also projected about 1.5 million foreclosed properties to hit the market this year, and most analysts felt foreclosures have peaked or are close to peaking. If not, and more foreclosures hit the market than expected, it will put downward pressure on home prices.
The analysts surveyed also expected mortgage rates to stay low and employment to gain steam for the rest of the year.