Double-Digit Price Increases Coming Soon?

Home buyers and sellers need to get ready to pounce. Hard-hit housing markets are on the road to recovery and expected to see major price gains soon.

Some of the hardest-hit markets during the housing crisis — plagued by soaring foreclosures and plummeting home prices — are expected to post some of the biggest gains through 2013, according to a report released this week by Fiserv.


"Some markets may have overshot to the downside, and people are jumping in to try to catch the bottom," says David Stiff, Fiserv’s chief economist. Fiserv recently projected that nationwide housing prices will gain 4 percent a year over the next five years.


San Jose-Sunnyvale-Santa Clara, CA Metropolitan Statistical Area
Forecast change: second quarter, 2011 – second quarter, 2012 -1.2%
Forecast change: second quarter, 2012 – second quarter, 2013 +1.2%

Market fundamentals
Median Family Income
(Fourth quarter 2011) $99,500
Median Home Price
(Fourth quarter 2011) $514,000
Change in Home Prices
(From fourth quarter 2010 thru fourth quarter 2011) -2.6%
Worst 1-Year Home Price Change
(1980-2011) -31.2%