Predictions for House Prices in 2009

There’s not really too much good news out there about what house prices will do in 2009. Experts are predicting that the global economic crisis - which they’re saying is likely to include a recession for at least three quarters of the year - will further damage the real estate market and in some places, drive prices down even further.

Over the last two years, the average house price in the United States has already fallen by 20%. Some experts think that 2009 will see another drop of 20%; others say it’s likely to be “only” 15%; but one thing’s for sure, nobody’s predicting a big rise in house prices. Of course, it also depends on where you are. The scariest predictions for value falls during 2009 are places like Miami (could fall by 19%), Los Angeles and Washington (experts say the drop could be 17%), and New York and Boston (also double digit falls - around 14% and 12.5% respectively).

But there’s good news. Nearly everyone’s predicting a turn around in the market towards the end of 2009 and on into 2010, so unless you’re in a position where you have to sell your house in the next year, just sit tight. Values should start to rise again and that neverending economic cycle should kick most people back into a more promising financial position. Fingers crossed.