Housing and mortgage trends in early 2011
Handing over house keys
5 housing trends in early 2011

Home sellers will face sagging prices
5 of 7

Selling a home will be a challenge due in part to a dearth of qualified buyers and the huge "shadow inventory" of homes that are stuck in the foreclosure process, but not yet on the market. If those dynamics and high rates of unemployment persist, so will the downward pressure on home prices.

Lower prices may attract more buyers, but many of them won't be able to qualify for a home loan. Lower prices could also increase the supply of for-sale homes if more owners walk away from their mortgages.

"I don't see any positives" for home sellers, O'Toole says.




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