Bank of America Merrill Lynch (BofAML) announced this March that it has revised its forecast to "[home] prices are bottoming now," following a better-than-forecast performance in the last quarter of 2011. Originally, BofAML forecast home prices would drop 8 percent starting in the second quarter of 2011 all the way to the first quarter of 2013. Home prices, however, only declined 3.2 percent through the second half of 2011 and are unlikely to drop another 4 percent to 5 percent.With its new forecast, BofAML now predicts flat prices between now and 2013, capped by a slight growth in 2014.
