Jun
12th
Thu
12th
With home prices plunging by more than 30% in some markets, bargain-hunters are ready to pounce. But it may pay for buyers to wait. Many housing experts say that the worst-hit metro areas have even farther to fall, and could see total drops of as much as 50%. “The housing boom was unprecedented in U.S. history,” said Michael Youngblood, a portfolio analyst with FBR Investment Management, “and the correction will be as well.” Youngblood expects that these markets will likely endure total price drops of 50% or more. Youngblood’s forecast “is quite plausible,” said Nicholas Perna, of the economic consulting firm Perna Associates. He finds it especially significant that the smart money, investors in the S&P Case/Shiller Home Price Index, are still buying futures as if they expect prices to continue to plummet.
