CoreLogic predicts little change in home prices in 2013
Dec 6 2011 5:21PM
As home prices fell for another month, an index predicts that home prices will continue to be low throughout next year.
CoreLogic's Home Price Index reports that home prices fell 1.3 percent, making October the third consecutive monthly decline. Prices including distressed sales declined 3.9 percent compared to numbers from October last year, while those excluding distressed sales slightly declined by 0.5 percent in comparison to numbers from 2010.
"Home prices will continue to decline in response to the weak demand for housing," said Mark Fleming, chief economist for CoreLogic. "While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance."
Fleming says that the company's forecasts indicate a flat growth through next year, meaning low home prices will continue to offer affordable opportunities for potential homeowners. This, combined with low mortgage rates and an eager market, should help stimulate the housing market which could provide a much-needed boost to the beleaguered economy.