Top economists say housing doom is overblown
(WASHINGTON) – The Washington Post reports that a team of housing economists
believe "predictions of further large housing price declines are greatly
overblown." The Post gathered some of the nation's top
economists to study the housing crisis. They concluded that in reality only four
states – Arizona, California, Florida and Nevada – have had home price declines
of more than 4 percent in the past year. The economists
said the home price index compiled by the Office of Federal Housing Enterprise
Oversight was the most comprehensive of the various
indexes. The Post said, "Our analysis reveals,
unsurprisingly, that foreclosures and home prices have negative effects on each
other over time, but this does not imply a vicious cycle of collapsing prices.
Our models predict that as foreclosures continue to climb in many states, house
prices will remain flat or decline in those states — but will not
collapse.
When to get the biggest discount in a home sale (SEATTLE) -
The online brokerage Redfin has released a study showing when buyers have the
highest opportunity to buy a home at the lowest price. According to Redfin,
heavily discounted homes are: -- 83 percent more likely to have been on the
market for 90-plus days. -- 73 percent more likely to be marketed as
fixer-uppers. -- 20 percent less likely to feature a substantial remodel. -- 28
percent more likely to have already been price-reduced. -- 52 percent more
likely to have been seller-owned for 20 years or more. -- 9 percent more likely
to be a short sale or bank-owned.
