The Real Deal Miami

Home prices to gradually drop next year

December 17, 2008 04:08PM

David Tobin, CEO of Mission Capital Advisors, said on a CNBC segment that he thinks home prices will drop 20 percent over the course of 2009, and maybe into 2010. Tobin said he doesn’t believe the prices will drop abruptly over the next two years like they did this past year. Tobin said that residential mortgages are locked up in securities that cannot be sold wholesale, and individual investors should be the ones to buy them, not the government.