More people expect falling prices
A new Gallup poll shows growing pessimism among Americans about home values. Just three in 10 expect prices in their area will rise in the coming year, vs. seven out of 10 at the height of the boom in mid-2005.
How many expect prices to fall, as opposed to stagnate? Thirty-five percent. (It was five percent in mid-2005.) In other words, Gallup says:
More Americans now expect housing values to decrease in their local residential real estate markets than expect them to increase.
This might explain the 40 percent drop in home sales in the Baltimore metro area last month, or perhaps there are other factors at work. Either way, you can read today's story about our housing market HERE.