National data continues to send mixed messages about the future of the housing market. While home values in some cities show signs of  stabilization, values in others cities are forecast to fall further. The key indicator seems to rest on the foreclosure market. Cities that have not seen spikes in inventory  and large amounts of foreclosures remain relatively stable as the year ends. On the other hand, cities that are plagued by foreclosures are seeing both home values dropping and inventories rising.

Eileen Rivera’s blog asks, “Are home prices about to get cheaper?”

“The S&P/Case-Shiller Home Price Indices measure the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. Case-Shiller has given hope that most housing markets may have already stabilized because the composite index of 20 cities rose in May, June and July of 2009.

Overall, the national median home price is predicted to drop 11.3% by June 30, 2010, according to Fiserv, a financial information and analysis firm. In Las Vegas, prices have already fallen 54.6% and are expected to lose another 23.9% by June 2010. In Phoenix, values have already collapsed by 54% and could fall another 23.4%. Home values in the nation’s second largest city, Los Angeles, have fallen 25.7% since July 2008 to a median of $311,100, according to the National Association of REALTORS®. They are expected to climb in 2011.”

The disparity that has emerged between markets is expected to continue into 2010. As economists speculate about job losses and mortgage rates, two important factors contributing to the real estate market,s growth, areas that were hit hard will probably not see growth for another year.

Click through to read Eilenn Rivera’s full post.

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