6
Jan
Housing Bottom in 2011
2011 housing market outlook
Moody’s Analytics Chief Economist Mark Zandi and Senior Director Celia Chen in an email for a webconference sated:
The housing market correction will come to a close this year thanks to accelerating job growth and low house prices. Foreclosures will still cast a pall on the housing market, however, weighing on the national house price index for much of 2011. Downside risks are receding, but the housing recovery remains fragile.
- Housing will hit bottom this year. Home sales and construction are already at their lows and house prices should bottom by the fall.
- Key to this outlook is an economy whose engines are fully engaged and businesses who are hiring more aggressively.
- Foreclosures, which will drive another 5% decline in house prices, remain one of the main risks to the outlook.