Moody's economy.com housing forecast released

In the latest news from the U.S. housing market, a report released this week says that median house prices are likely to decline more than 10% over the next few years in 20 metro areas, including Las Vegas, Tucson, Ariz., and Washington, D.C. The report, by Moody's Economy.com Inc., a research firm in West Chester, Pa., also says that the slump won't end quickly. Indeed, according to the report, prices may keep falling until 2008 or even 2009 in some areas. In all, prices are falling or likely to decline soon in about 100 metro areas, the firm says.

While this sounds dismal, 20 markets out of 461 is not very many. Even with the smaller declines in the other 100 metros, this leaves the majority of the MSA's with appreciating nominal prices.