Over the next few years, more than three-quarters of the nation’s housing markets will suffer a decline in home prices. Many will experience double-digit hits in a forecast that has worsened considerably in recent months.
According to an analysis conducted by Moody’s Economy.com, price declines will exceed 10 percent in 86 of the 379 largest housing markets. And 290 of the cities will experience price drops of 1 percent or more. All are median prices for single-family houses.
Nationally, Moody’s is projecting an average price decline of 7.7 percent. That’s a jump from the 6.6 percent total price drop that the company was forecasting in June and more than twice that of last October’s forecast of a 3.6 percent price decrease.
Six of the nation’s 10 biggest cities face price declines of 1 percent or more with Phoenix, at a 17.8 percent loss, undergoing the worst reversal. The San Diego area will suffer through a 10.9 percent fall, Los Angeles (down 10.6 percent), New York, (down 5.3 percent), San Jose, (down 4.4 percent) and Philadelphia (down 3.1 percent) will also fall.
Here are the forecasts for the nearest MSAs:
Newark-Union, NJ – Down 15.4% by 2008.Q4
Edison, NJ – Down 13.3% by 2008.Q4
Nassau-Suffolk, NY – Down 12.3% by 2009.Q1
New York-White Plains-Wayne, NY/NJ – Down 5.3% by 2008.Q4
Allentown-Bethlehem-Easton PA/NJ – Down 3.3% by 2008.Q4
Philadelphia, PA – Down 3.1% by 2008.Q3