Most of the economists surveyed predicted continuing declines in house prices this year followed by slight increases in 2012. The survey forecasts the next Case-Shiller home price index will show a 3.9 percent year-over-year decline in house prices compared to the second quarter of 2010.
The economists predicted an average 2 percent increase in house prices for 2012, though six of the respondents said prices will continue to go down next year.
But these gloomy prognostications do not necessarily apply to housing markets in every part of the country. The CNNMoney survey was released just a day after the Seattle Post-Intelligencer declared the local real estate market may have hit bottom and begun to rebound.
The Seattle paper cited a housing report showing June sales in King County rose 12 percent from May and were up 0.6 percent from a year ago. Matt Deasy, general manager of a local real estate firm, told the Post-Intelligencer a diminished supply of listings has combined with more sales to shift the overall climate in a positive direction.
Still, those looking to relocate to Seattle will likely find deals, since the median June sales price for houses was 4.7 percent lower than it was this time last year.
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