An AP story hidden on page four of the Boston Globe business section, entitled "Housing prices apt to fall much more," reports that:
"A group of 10 economists says that home prices in the United States are only halfway through their fall."
"…and most of the further erosion should occur this year."
Those predictions are consistent with consumer surveys conducted by The Real Estate Cafe and Boston Bubble six months ago (December 2007 & January 2008), which revealed that consumers expected housing prices to bottom out sometime in 2009 or 2010.
When consumers in Greater Boston were asked to graph housing prices over the next 5 years (through 2012) in their local city or town, the composite pattern above emerged. A comparison of that table to the results of the same question asked two years ago (January 2006), reveals that consumer price expectations have taken a sharp downturn.
A recent report from the Federal Reserve Bank of Boston projecting that foreclosures may not peak in Massachusetts until the 2nd quarter of 2010, could send housing price expectations even lower. What’s your prediction as we end the 3rd quarter of 2008?