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Housing prices could fall by 20% in 183 cities, new data shows

Mount Equity Group Tokyo Japan > News > Markets > Housing prices could fall by 20% in 183 cities, new data shows

Housing prices could dip by as much as 20% in more than 180 markets nationwide if the US economy falls deeper into a recession, according to a new study.

Experts at the research firm Moody’s Analytics said that homes in 183 of the 413 largest regional housing markets in the country are “overvalued” by more than 25%.

A map based on data from Moody’s was published by Fortune. It showed that home prices were poised to fall in so-called “bubbly” markets like Phoenix and Boise.

Mark Zandi, the chief economist at Moody’s, told Fortune that he believes housing prices in the US will either remain the same or fall by as much as 5%.

The adjusted forecast is in contrast to earlier predictions which held that housing prices would remain unchanged over the next 12 months.

If the US falls deeper into a recession, home prices could drop by as much as 10%, according to Moody’s.

The firm…

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