Real estate poll: Predict home prices
Wonk reader Jaded indirectly suggested today's poll when he predicted where home prices will head from here. I figured you all might like to play this parlor game.
Put on your forecasting hat and weigh in:
What does Jaded think? "I'm predicting a further 7-10% decline in home prices in the Baltimore metro area," he wrote in a comment Friday. (He didn't specify the time period, so this prediction might not be strictly comparable with the poll.)
He's hoping prices will fall, even though he's a homeowner:
"When are we going to realize that this market is still way over inflated and has nowhere to go but down? I know that no one wants to hear that but lower prices are the only thing that is going bring about equilibrium. I own my home and don't want its value to decline but in a few years I hope to be able to purchase a larger home and if prices go up I'll never be able to afford more house! I don't mind a little depreciation now in order to be able to move up later."
It makes sense that renters would root for lower home prices, but I think people (and certainly policymakers) assume that homeowners want the slump to be Over with a capital O. So, homeowners: Do you want prices to rise, or do you agree with Jaded?