Prices will continue to drop into next year

A real estate analytics company has updated its projections for next year, saying that home prices will continue their decline into 2011.

That's a reversal of earlier predictions from Fiserv, which originally predicted prices would rise 4 percent next year, but now says they will more likely drop 7.1 percent from June 30, 2010 to June 30, 2011. Additionally, CNN reports that estimates from Moody's Analytics predict prices to drop another 8 percent through next year's third quarter, which would put home prices 34 percent lower than what they were at their peak.

That could make moving into a new home more affordable than ever, especially at a time where mortgage rates are near record lows. On top of that, Moody's chief economist, Mark Zandi, told CNN that he expects more job opportunities to crop up in the near future as corporate profits rise in the near future. That could give many more Americans new jobs, a scenario that would lead to increased relocation activity.

Increases in employment would be welcome at a time when the American economy continues to lose jobs. The most recent report from the Bureau of Labor Statistics showed that the nation lost roughly 95,000 jobs in September, though private employers actually added 64,000 jobs.
 

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