Home-Price Slide: Slower, Not Over
By Constance Mitchell Ford
The Wall Street Journal
April 30, 2010
Home-sale activity has been picking up in communities across the New York metropolitan area. However, some economists believe that prices, which declined during the fourth quarter in most areas, will continue to move lower.
"Although affordability has been restored to a great degree, prices are still high relative to household income," said David Stiff, chief economist at Fiserv Case-Shiller, a financial-services firm based in Brookfield, Wis.
"We haven't returned to equilibrium yet," according to the economist.
Mr. Stiff said the expiration of the federal tax credit for first-time home buyers, which ends Friday, also will weigh on prices.
"We expect that prices will drop by a little bit more and will stabilize a little bit later than for the U.S. as a whole," according to Mr. Stiff.
He added that in the New York City region, the more expensive areas will experience less dramatic price declines than less expensive markets.
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