How long could it possibly last? At least another year, in some places.
[See 15 cities where the housing bust is ending.]
Nationwide, there's a good chance the housing bust will finally end in 2011, after price declines of more than 30 percent from the 2006 peak. In some markets, prices may even start to rise this year. But in many cities the housing bust is still going strong, for reasons everybody knows about by now: rampant speculation, vast overbuilding, lousy lending standards, and persistently high unemployment. Here are the 15 metro areas where research firm Fiserv expects home values to fall by the most in 2011. Some should see a rebound in 2012, with home prices likely to turn around. But some cities face at least two more years of pain:
| Price change in 2011 | Price change in 2012 | |
|---|---|---|
| Naples, Fla. | -18.9% | -4.3% |
| Ocean City, N.J. | -17.4% | -0.9% |
| Salinas, Calif. | -16.2% | 3.8% |
| Riverside, Calif. | -16% | 3.1% |
| Merced, Calif. | -15.8% | 8.3% |
| Punta Gorda, Fla. | -15.2% | 3.8% |
| Detroit | -15.1% | 5.9% |
| Miami | -14.5% | -10.7% |
| Orlando | -14% | -4% |
| Fort Lauderdale, Fla. | -13.6% | -7.6% |
| West Palm Beach, Fla. | -13.3% | 0% |
| El Centro, Calif. | -13.3% | 5% |
| Las Vegas | -12.9% | -6.5% |
| Atlantic City, N.J. | -12.8% | -6.5% |
| Phoenix | -12.8% | -4.8% |
Note: Forecasts are for a median-priced, single-family home, from third quarter to third quarter.
Twitter: @rickjnewman
Reader Comments Read all comments (2)
GS of MN 1:34PM March 08, 2011
Janet of GA 5:15PM February 12, 2011