Posted on Thursday, April 8, 2010
The continued oversupply of homes on the market still weighs on house prices. Some of this price decline may also be seasonal. But some of it is also due to advance purchases by people for the tax credit.
Stronger sales and reduced inventory over the second half of the year should allow prices to be about unchanged over the course of 2010. Existing home sales are expected to climb from 2009 levels by 6.6% and new sales by 22.3% but rememeber in 2008 and 09 sales came to almost a complete halt so even though an increase is good its an increase from a very low place to start. So far sales for 2010 are less than predicted.