Housing recovery predicted to slow
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The number of homes nationwide gaining value throughout the nation are expected to fall by 12 percent over the next 10 months as the housing recovery slows, according to a forecast by Weiss Analytics.
The latest information released by the Natick-based housing analyst company predicts that by October of 2016, the percentage of American homes continuing to appreciate will be down to 51.3 percent. This continues a multi-year decline, according to the analysis, with the percentage of appreciating homes having fallen from 65.2 percent in July 2014 to 58.4 percent in October 2014, despite a 4.5-percent uptick in August.
The percentage of homes that are depreciating is expected to drop, but not at a rate high enough to offset the houses that are no longer appreciating, according to Allan Weiss, CEO and founder of Weiss Analytics.
While these two factors could slow recovery in areas that are still hurting after the financial crisis, it could also work to prevent the formation of bubbles of overvalued properties that could result in defaults, he said.
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