Residential real estate markets where pre-bust prices were greatly inflated, such as in California, Florida, Arizona, and Nevada, probably won’t surpass their previous highs until 2025, predicts financial services tech company Fiserv.

A slow recovery is also expected in urban neighborhoods where there was a lot of predatory lending, such as Minneapolis, Memphis, and Chicago.

"Nationally, the data points to a further 7 percent decline in home prices through the end of this year, with a prolonged recovery beginning early in 2011. In many markets, the emphasis is on the word prolonged," says Fiserv chief economist David Stiff.

Source: Property Wire