Home prices could dip another 7%: Barclays
Home prices could fall up to 7% by the end of the 2012 first quarter, Barclays Capital said Friday in a report to clients. Barclays also noted the worst-case scenario for a further home price collapse, where property value falls another 15 to 20% from current levels, is low. Fannie Mae's recent survey of a sample pool of Americans found that most of those surveyed believe home prices will fall another 1.1% over the next year. Home prices recently experienced a minor decline. In August, home prices decreased 0.4% on a month-over-month basis, the first monthly decline in four months, according to CoreLogic. Meanwhile, Clear Capital expects another home price dip is on the way. Home prices rose nationally 3.5% in the third quarter over the previous quarter, according to the latest home data index from Clear Capital. However, the company also predicts another minor decline in home prices for the fourth quarter of 2011, and a continued slide through the end of the first quarter of 2012. Write to Kerri Panchuk.