U.S. home prices expected to slide another 8%

(CNNMoney.com) -- The robo-signing controversy is just another issue that the already sluggish housing market didn't need -- but most analysts do not think it will have far-reaching impact.

Nevertheless, the housing market still faces many problems: a weak economy, sluggish hiring, tight mortgage underwriting, falling home prices, and slowing sales.

Then there's the potentially disastrous number of foreclosures that may occur over the coming years.

"The market faces much bigger problems than the robo-signing issue," said Mike Larson, a housing market analyst for Weiss Research.

Prime among them are declines in home prices. And while cheaper homes are good for buyers, they also speak to a housing market that won't stabilize.

Fiserv, a market analytics company, has scaled back its home price projections considerably. In February, it forecast national price gains of about 4% through the end of 2011. The company's latest prediction is for a 7.1% drop in prices between June 30, 2010 and June 30, 2011. (more)