More real estate experts are forecasting larger-than-expected U.S. home price declines, as foreclosures make their way through the market. Citing Moody’s data, Bloomberg News reported that sales of repossessed properties will rise 25 percent this year from the 1 million such sales recorded in 2011.
Because repossessed properties sell at a 35 percent discount from lenders’ valuation of the homes — and a 60 percent discount for distressed homes on the market for two years, according to the Federal Reserve Bank of Cleveland — home prices are sure to fall with the continued foreclosure activity. [more]




