Forecast Impacts FSBO Properties and Other Houses for Sale

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Forecast Impacts FSBO Properties and Other Houses for Sale

By: John Cutts

Sellers of FSBO properties might want to take note of the Fiserv Case-Shiller Indexes study which projected that housing unit prices in Indianapolis, Indiana will decline by over two percent within a period of 12 months. The forecast is expected to impact all types of home sellers in the city.

Housing analysts stated that the expected decline in prices will affect Indianapolis repossessed properties, foreclosed houses, for sale by owner properties and even newly-built dwellings for sale. According to the study, prices of residential properties will decline by around 2.5% between the months of June 2010 and May 2011.

Indiana repo houses and foreclosed homes in the whole state are already priced way below the average selling price of non-foreclosure properties, so the projection is not exactly welcome news for home sellers. Furthermore, all types of residential properties in the area, both new and existing, have suffered from declining prices since the start of the housing market crisis over three years ago.

Sellers of FSBO properties might have to reconsider their plans of selling their homes since a further decline in housing prices will likely mean that they will not be able to get any profit from their venture. According to the study, the projected decline will be considerably higher than the actual 1.5% price decline in home prices recorded during the June 2008-June 2009 period.

This forecast, however, will be good for people buying repossessed houses and other types of residential properties since it will give them further discounts in an already low-priced purchasing market. The authors of the study have revealed that they derived their price forecast from the rate of home selling activities following the expiration of the U.S. federal government's tax credit initiative.

According to them, the tax program delayed the decline of housing prices needed to get home affordability back to the level seen during the pre-market bubble period. The projected decline will come right after the 2.4% drop in average housing prices recorded in Indianapolis which started in the middle of 2007 and ended in the middle of 2010. Fiserv also reveals that most metropolitan areas in the U.S. will experience declining residential property prices, including FSBO properties, during the 12-month period highlighted by the study.

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