Fiserv Predicts Further Price Declines in 2010

Home prices could decline on a nationwide basis this year, with a "prolonged" recovery starting next year although some locales could see a quick revival, according to the chief economist of Fiserv. "Nationally, Fiserv Case-Shiller data points to a further 7% decline in home prices through the end of this year, with a prolonged recovery beginning early in 2011. In many markets, the emphasis is on the word 'prolonged,'" said chief economist David Stiff. Some markets, such as Pittsburgh, Columbia, S.C., and certain metropolitan areas in Texas, Washington state and upstate New York are poised for a relatively fast recovery. But in areas such as California, Florida, Arizona and Nevada, it may take 15 or more years for home prices to climb back to their peak as several powerful forces in the market will severely hinder housing recoveries, Mr. Stiff said.