The online real estate site Zillow, released a new research study where they conclude home prices will continue to fall until Q2 2011...at the earliest. Why? One word: foreclosures.
Nationally, we now don’t expect home values to hit bottom until first half of 2011 at the earliest due to continuing increases in foreclosure volumes.
With home values 25% below their peak and 51 consecutive months of declines, the length and severity of the current downturn is fast approaching the length and depth of the Depression-era housing declines.
Below is the Zillow Home Index. They enabled embedding and there is a link to their interactive tables and charts, so let's give it a whirl.
Home Prices
The study results are not surprising. Government policies and the banks have delayed an inevitable supply of foreclosures. Another factor not mentioned is jobs, considering that sufficient income is needed for a mortgage, which determines the maximum home price a buyer can get.