David Stiff, chief economist at Fiserv, a financial analytics firm, forecasts housing prices will begin rising later this year and increase four percent a year for the next five years. CNNMoney says according to the National Association of Realtors (NAR), around half of 146 metro housing markets surveyed indicated a price increase, as the median price of a home fell 0.4 percent for the first quarter 2012 versus Q1 2011. NAR adds the national inventory of homes has dropped 22 percent compared to the first quarter of last year, which should slowly drive prices higher. RealtyTrac, which markets foreclosures, states another impetus pushing home prices up is banks choosing short sales over repossessions. Property that’s repossessed often goes through a long vacancy during which time the house can deteriorate and lose value. Additionally, repossessed homes sell for 25-50 percent below conventional sales.
