Experts: Foreclosures Will Push Home Prices Down

Two new studies say the tsunami of home foreclosures will continue to surge, meaning home prices will keep falling in troubled areas.

And both studies, conducted by Standard & Poor’s and John Burns Real Estate Consulting, say most government efforts to ease the terms of troubled mortgages will merely delay rather than prevent further foreclosures, The Wall Street Journal reports.

John Burns figures that 5 million more homes will enter foreclosure or related proceedings over the next few years.

That accounts for 65 percent of the estimated 7.7 million homeowners who are now delinquent on their mortgage payments. (more)