Report: Home Prices Likely to Hit Bottom in March

Report: Home Prices Likely to Hit Bottom in March Home prices in 45 of the largest housing markets are expected to fall another 4.2 percent before they hit bottom in March, according to First American CoreLogic’s LoanPerformance Home Price Index.By October 2010, prices are expected to be heading upward again by about 1 percent compared to 2009.The report warned that this progress could be jeopardized by an increasingly large “shadow inventory” of homes owned by banks but not yet on the market. The problem is particularly acute in Michigan and Ohio cities, the report said. It projected a 12.7 percent further decline in values in Detroit, an 11.4 percent decline in most of the rest of southeast Michigan, and a 6.3 percent fall in Cleveland.The report expects the strongest recoveries next year in California cities. These include:
San Francisco, up 5.7 percent
Los Angeles, 5 percent
San Diego, 4.7 percent
Sacramento, 4.6 percent
Source: Inman
In Pasadena, on a price-per-squarefoot basis, we hit bottom in mid 2010, in all areas except the Northwest quadrant. Source: iTech MLS.