TRICK OR TREAT: Fiserv: Triple Dip Seen in 2012 Home Values, With Prices to Reach New Low of 35% Below 2006 Peak

TRICK OR TREAT:  Fiserv: Triple Dip Seen in 2012 Home Values, With Prices to Reach New Low of 35% Below 2006 Peak
If you think housing prices have reached rock bottom, think again, suggests Brookfield, WI-based financial analytics firm Fiserv ((NASDAQ:FISV).   


Fiserve reported Monday, Oct. 31 (Link: http://money.cnn.com/2011/10/31/real_estate/home_prices/index.htm?iid=HP_LN).

that housing values will triple dip in the coming months, falling another 3.6 percent by next June. Prices are expected to reach a new low of 35 percent below the peak reached in early 2006.  


The numbers appear to be in line with other benchmarks, including the widely respected S&P/ Case-Shiller Home Price indices. The most recent one, released on Oct. 25, said that nationally price levels are back to levels they were in mid 2003. 


"Measured from their June/July 2006 peaks through August 2011, the peak-to-current declines for the 10-city Composite and 20-city Composite are -30.9% and -30.8%, respectively," the S&P/Case-Shiller report stated.

  On May 9, 2011, Zillow's first quarter Real Estate Market Reports said that home values fell faster in the first quarter 2011 than they have in any quarter since 2008. The Zillow Home Value Index  fell 3 percent from the fourth quarter of 2010 to the first quarter of 2011, and declined 8.2 percent year-over-year to $169,600. Home values have fallen 29.5 percent since they peaked in June 2006 -- numbers in line with the Fiserv report.


Fiserv: "It was just May of this year that Americans faced a double dip in the U.S. housing market. At that point, home values had fallen to 33 percent below the peak five years prior. They had also dropped below the previous low in March 2009 of 31 percent during the recession and shortly after the housing market crash."  

Contributing to the expected triple dip, Fiserv says, include the "increase in foreclosure activity that is leaving thousands of homes empty, sustained high unemployment and consumers' fear of taking on a major purchase like a mortgage loan" when home prices continue to decline.  

Any light at the end of the tunnel will be dimmer than a jack-o'-lantern: "After the near 4 percent drop through June 2012, national prices are expected to climb about 2.4 percent through June 2013," the Fiserv report stated.  
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