Are Housing Prices Headed For A Big Fall?

Are housing prices headed for a big fall?, from MSNBC.com, reports that as the slump in U.S. housing markets picks up steam, homeowners and sellers in the once hottest markets of the country now face the biggest price declines, analysts say. And even if the U.S. economy remains healthy, it could be a year--or more-- before the market bottoms out, they say. Sellers and builders coast to coast are making concessions on homes that don't show up in the official sales price, like paying closing costs or a free pool. "So the effective price is lower and probably already falling, but you don't see that in the market price," said Mark Zandi, chief economist for Moody's Economy.com. "I'm expecting 5 to 10 percent peak-to-trough declines in a third to maybe half of the nation's markets," he added. The markets hardest hit will be the same ones that had the biggest price run-ups last year, including the Northeast and East coast down to Washington, D.C.; much of Florida; California; hot western markets like Arizona and Las Vegas, and once-strong markets like Chicago and Minneapolis.

http://www.msnbc.msn.com/id/14172172/