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Monday, November 7, 2011

Triple dip ahead for U.S. home prices
Triple dip ahead for U.S. home prices
The U.S. home market will hit another low by next year, dropping even further below its 2006 peak, according to Fiserv, a financial analytics company.

Fiserv said home values will fall 3.6% by next June in the U.S., which will be a new low from the 2006 peak, down 35% from that point.

CNN Money reports the company’s 2012 prediction might not even be the eventual bottom, due to the massive shadow inventory of foreclosures that has yet to even be released.

Some U.S. cities popular with Canadians are among those expected to be hardest hit with price decreases next year. Naples, Fla., for example, will see prices drop another 18.9% by next June, according to Fiserv. That’s the largest decrease in price of any metro area covered.

Las Vegas wasn’t far behind, expected to see prices fall 15.9%, followed by Riverside, Calif., predicted to fall another 14.8%, and Miami was projected with a 14.8% drop, according to CNN.

But other cities, already hard hit in years past, will see some kind of recovery by next year in prices. Oscala, Fla., for example, will see prices gain 22.4% for the 12 months ending June 30, 2012. CNN said Oscala had already seen home prices drop about 50% previously.

Similarly, other previously suffering markets will gain next year, like Napa, Calif., projected to rise 20.9% next year, and Panama City, Fla., expected to gain 18.2%.