Scott G. Winterton, Deseret News

Home prices in Salt Lake are expected to fall 0.3 percent by the end of 2012, extending the 3.7 percent drop in 2011, according to the Fiserv Case-Shiller Home Price Index released today. Salt Lake saw a 14.8 percent drop in home prices from 2008 to 2011, according to the report. Rising apartment rent makes buying a cheaper option, which will bring in first-time and trade-up buyers into the market, especially as new households are formed. “Falling home equity has cut into household consumption and has further constrained the economic recovery,” David Stiff, chief economist at Fiserv, said in a statement. “However, very low prices have also started to draw in more buyers. As demand for houses ramps up, construction activity will increase and residential investment will begin to make a substantial contribution to the recovery and GDP overall.”

Salt Lake's home prices expected to drop in 2012, but rise in 2013
Scott G. Winterton, Deseret News

The change in home prices in Salt Lake was 4.9 percentage points below the national average between 2008 and 2011. The city lagged behind the national average slightly in 2011 as the U.S. posted a 4.0 percent drop.

Provo and Orem are expected to fall .5 percent in 2012, but is expected to rise 5.2 percent in 2013. Home prices in the area dropped 18.2 percent from 2008 to 2011.

St. George will experience a 5.7 percent fall in 2012, making it the biggest expected drop in the state, according to the survey.

The Detroit-Livonia-Dearborn, Mich. Metropolitan area is expected to fall the furthest in 2012 with a projected decrease of 12.2 percent. The area also saw the biggest rebound in home prices last year, dropping 9.6 percent since the last quarter of 2010.

Salt Lake's home prices expected to drop in 2012, but rise in 2013
Matt Gillis, Deseret News

The Phoenix-Mesa-Glendale, Ariz. metropolitan area isn’t far behind with an expected 11.1 percent drop in 2012.

Increased demand and home building will bring price declines to a halt in 2013, according to the home price study. Salt Lake home prices are expected to rise by 9.5 percent in the coming year.

"We expect that home prices, which generally lag changes in sales activity by nine to 12 months, will stabilize by the end of this summer and then rise at an annualized rate of 3.9 percent over the next five years," Stiff said in a statement.

The study tracked home price trends in more than 380 U.S. Markets based on the Fiserv Case-Shiller Indexes.

The next few slides will show the top 25 cities that are expected to have the biggest drops in 2012.

How Salt Lake compares to the rest of the Nation
Ravell Call, Deseret News

Forecast Change in 2012: -0.29%
Forecasted Change in 2013: 9.45%
Annualized Change from 2008 to 2011: -2.7%

The National Average
shutterstock.com

Forecast Change in 2012: -0.8%
Forecasted Change in 2013: 4.16%
Annualized Change from 2008 to 2011: -7.59%

#25- St. George, UT
R. Scott Lloyd, Deseret News

Forecast Change in 2012: -5.67%
Forecasted Change in 2013: 1.49%
Annualized Change from 2008 to 2011: -8.76%

#24- Modesto, CA Metropolitan Statistical Area

Forecast Change in 2012: -5.71%
Forecasted Change in 2013: 0.09%
Annualized Change from 2008 to 2011: -17.63%

#23- Altoona, PA
Christopher & Amy Cate via Flickr

Forecast Change in 2012: -5.77%
Forecasted Change in 2013: 1.5%
Annualized Change from 2008 to 2011: 2.25%

#22- West Palm Beach-Boca Raton-Boynton Beach, FL Metropolitan Division
wallyg via Flickr

Forecast Change in 2012: -5.89%
Forecasted Change in 2013: -0.3%
Annualized Change from 2008 to 2011: -12.51%

#21- El Centro, CA
nickolouse via Flickr

Forecast Change in 2012: -6%
Forecasted Change in 2013: -0.72%
Annualized Change from 2008 to 2011: -13.82%

#20- Bakersfield-Delano, CA Metropolitan Statistical Area

Forecast Change in 2012: -6.05%
Forecasted Change in 2013: 3.92%
Annualized Change from 2008 to 2011: -15.35%

#19- Jacksonville, FL Metropolitan Statistical Area
Areopagus via Flickr

Forecast Change in 2012: -6.18%
Forecasted Change in 2013: -0.25%
Annualized Change from 2008 to 2011: -9.66%

#18- Joplin, MO Metropolitan Statistical Area
David Cohen via Flickr

Forecast Change in 2012: -6.4%
Forecasted Change in 2013: -0.99%
Annualized Change from 2008 to 2011: 0.6%

#17- Miami-Miami Beach-Kendall, FL Metropolitan Division
Richiesoft via Flickr

Forecast Change in 2012: -6.43%
Forecasted Change in 2013: -3.77%
Annualized Change from 2008 to 2011: -14.1%

#16- Fort Lauderdale-Pompano Beach-Deerfield Beach, FL
epitomized1 via Flickr

Forecast Change in 2012: -6.74%
Forecasted Change in 2013: -6.14%
Annualized Change from 2008 to 2011: -12.29%

#15- Prescott, AZ
gem66 via Flickr

Forecast Change in 2012: -6.83%
Forecasted Change in 2013: -0.87%
Annualized Change from 2008 to 2011: -11.54%

#14- Orlando-Kissimmee-Sanford, FL
jimmyshag via Flickr

Forecast Change in 2012: -6.86%
Forecasted Change in 2013: -0.98%
Annualized Change from 2008 to 2011: -14.06%

#13- Port St. Lucie, FL
Adam Baker via Flickr

Forecast Change in 2012: -6.97%
Forecasted Change in 2013: -0.8%
Annualized Change from 2008 to 2011: -13.96%

#12- St. Joseph, MO-KS
JimmyWayne via Flickr

Forecast Change in 2012: -7.2%
Forecasted Change in 2013: 0.62%
Annualized Change from 2008 to 2011: -0.35%

#11- Punta Gorda, FL
Katy Silberger via Flickr

Forecast Change in 2012: -7.37%
Forecasted Change in 2013: 1.47%
Annualized Change from 2008 to 2011: -15.23%

#10- Mankato-North Mankato, MN
xavierla via Flickr

Forecast Change in 2012: -7.38%
Forecasted Change in 2013: 1.68%
Annualized Change from 2008 to 2011: -1.6%

#9- Ocean City, NJ
MrFredFedora via Flickr

Forecast Change in 2012: -7.46%
Forecasted Change in 2013: -3.69%
Annualized Change from 2008 to 2011: -4.94%

#8- Las Vegas-Paradise, NV
Moyan_Brenn via Flickr

Forecast Change in 2012: -7.5%
Forecasted Change in 2013: -3.26%
Annualized Change from 2008 to 2011: -17.2%

#7- Panama City-Lynn Haven-Panama City Beach, FL
Bob Therina via Flickr

Forecast Change in 2012: -7.65%
Forecasted Change in 2013: 1.03%
Annualized Change from 2008 to 2011: -9.09%

#6- Flagstaff, AZ
Ken Lund via Flickr

Forecast Change in 2012: -7.72%
Forecasted Change in 2013: 0.95%
Annualized Change from 2008 to 2011: -8.51%

#5- Merced, CA

Forecast Change in 2012: -7.94%
Forecasted Change in 2013: 3.75%
Annualized Change from 2008 to 2011: -19.57%

#4- Cape Coral-Fort Myers, FL
ezz_eddie via Flickr

Forecast Change in 2012: -7.95%
Forecasted Change in 2013: -1.32%
Annualized Change from 2008 to 2011: -15.28%

#3- Naples-Marco Island, FL
Sue Elias via Flickr

Forecast Change in 2012: -9.5%
Forecasted Change in 2013: -4.48%
Annualized Change from 2008 to 2011: -13.86%

#2- Phoenix-Mesa-Glendale, AZ

Forecast Change in 2012: -11.14%
Forecasted Change in 2013: 0.42%
Annualized Change from 2008 to 2011: -14.48%

#1- Detroit-Livonia-Dearborn, MI
Bernt Rostad via Flickr

Forecast Change in 2012: -12.23%
Forecasted Change in 2013: -2.53%
Annualized Change from 2008 to 2011: -14.02%