Two-Thirds Say Home Prices Won’t Reach Old Highs

A new survey finds that almost two-thirds of those polled feel that home prices won't hit the stratospheric highs they did during the real estate bubble.

Las Vegas, NV, June 19, 2013 --( A new survey shows that two out of three U.S. consumers feel that home prices won’t reach the heights of the real estate bubble ever again in their lifetimes.

The just released survey was exclusively conducted by financial news website Money, which regularly surveys consumers on important issues related to the economy. The poll found that 65% of those surveyed or almost two out of three surveyed do not believe that home prices will hit the highs many areas of the country experienced in 2006 through 2007.

The U.S. housing market plummeted in many of the most popular regions, falling as much as 80% in parts of Florida, Michigan, Nevada and California after investors stopped buying Collateralized Debt Obligations (CDOs) on Wall Street. The securities were sold to supply the cash for mortgages of all types, including conventional loans and once popular Alt-A mortgages, which gave borrowers six options to re-pay loans.

Home prices have increased in the past year, but at a much more moderate pace than during the real estate bubble. However, another round of deflation in home values is likely to develop as a result of the reemergence of minimum 3% down mortgages, according to many economists who specialize in housing.

Almost two-thirds of the banking regulations that were also expected to be adopted as a result of Dodd-Frank legislation passed by Congress have also been held up by special interests lobbying to keep new restrictions from ever being adopted.

Financial experts in business, including stocks, bonds, real estate and banking provide detailed reports and financial forecasts for consumers to better protect themselves in the world of finance and save money at Money Journal dot com. There are lots of ways to save money on all sorts of products and services provided through the website on everything from a home mortgage to finding the best cheap beer on a budget.
Money Journal
Rick Hanson