Hagerty, James R. 2007. "Price Indexes Will Map Out Spread of 'Negative
Wall Street Journal (22 December): p. A 2.
"Last March, First American CoreLogic, a housing- and mortgage-data
Santa Ana, Calif., calculated that nearly 7% of 32 million U.S.
as of December 2006 owed more than their homes were worth, based on
estimates of the property values. The homes studied had mortgages
originated in 2004
through 2006, around the peak in the housing market. Since the end of
home prices on average have fallen nearly 5%, said Mark Fleming, chief
the firm. That suggests that about 11% of the homes studied now would
equity. An additional 5% or so probably have equity of less than 5%.
leave much cushion at a time when prices are still falling and most
expect the market to hit bottom for at least another year."
"Economists at Merrill Lynch say home prices are likely to fall 10% in
slipping 5% this year. Mark Zandi, chief economist of Moody's
research firm in West Chester, Pa., recently forecast that on average
prices will decline about 13% by the second quarter of 2009 from a peak
second quarter of 2006. Declines will be much larger in Florida,
and Nevada, as well as in the metropolitan areas of Washington, D.C.,