New Forecast Predicts Decrease In Mass. Home Prices

BOSTON — A new forecast projects a decrease in Massachusetts home prices as much as 6.5 percent this year. The forecast, from the financial services consulting company Fiserv, is based on the Case-Schiller home price tracking.

The Boston-Quincy metro market is expected to fall 4.5 percent this year, Cambridge-Newton down almost 5 percent and Worcester home prices are slated to fall 6.5 percent.

“So there’s a lot of pessimism about the housing market after a long period of price declines,” said David Stiff, Fiserv’s chief economist. “It takes a while for people to rebuild confidence to make a purchase.”

More of that would come next year. Stiff said Bay State home prices will recover in 2012, with a 2.2 percent rebound in the Boston-Quincy metro market.