Tags: Deutsche Bank | home prices | drop | percent

Deutsche Bank: Home Prices to Fall 10 Percent

By    |   Monday, 21 Dec 2009 08:31 AM

Deutsche Bank researchers say home prices will drop a further 10 to 12 percent from current levels.

The projections come from the securitization arm of the investment bank and are the first forecast expanded to include more factors that impact home prices overall as well as a variety of ranges that include month-to-month and peak-to-trough, housingwire.com reports.

“A change in market psychology (which can both cause, and be caused by, recent home price increases), some signs of labor market stabilization and various government programs aimed at easing the housing crisis have all been constructive for housing,” DB researchers write.

Nonetheless, recent home price gains have likely run their course.

“Government bailouts lack the potency to counter larger issue of unemployment, tight credit and the rising negative equity,” they say. “In the worst of it, with another 29 percent decline in home prices (is) projected.”

A new study estimates there was a 1.7 million-unit pending supply of U.S. residential housing inventory at the end of September, up from 1.1 million a year earlier, according to research firm First American CoreLogic.

The pending supply, sometimes called shadow inventory, includes estimates of real estate owned by banks and mortgage companies and real estate at least 90 days delinquent.

Normally, the so-called shadow supply is not included in official measures of unsold inventory, First American CoreLogic said.


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Deutsche Bank researchers say home prices will drop a further 10 to 12 percent from current levels. The projections come from the securitization arm of the investment bank and are the first forecast expanded to include more factors that impact home prices overall as well...
Deutsche Bank,home prices,drop,percent
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2009-31-21
Monday, 21 Dec 2009 08:31 AM
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