Experts Say Housing Recession Nearly Over

This isn’t great news but every little bit helps. Analysts who monitor real estate data are saying that home values should stop dropping late next year.

Photo of home in Louisville KY
Home prices have dropped in Louisville to a lesser degree than the Nation but that’s starting to change. | Photo: Tre Pryor

Here’s a quote from the USA Today article:

U.S. homeowners lost $681 billion this year, according to a study by real estate website operator Zillow set for release today. That’s less than the $1.1 trillion drop in value in 2010, let alone the $2.7 trillion in losses in 2008, Zillow said. And a Zillow survey of 109 economists says U.S. home prices will stop falling late next year or early 2013, with the most optimistic quarter of economists predicting an 18% rebound by 2016.

What does that mean for your situation? If you are currently renting, make sure to add, “Buy a new home in 2012” to your To-Do List.

For those with a house in Louisville to sell before you can move to a new home, it’s a bit trickier. If you’re planning on moving up, you should also make the move before prices rebound and interest rates are still low.

A lateral move is a toss-up. Speak with your real estate expert.

If you are downsizing, then I recommend waiting until home prices have returned to 2008 levels.