Real Estate Market 2011 Double Dip
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Back on July 7th, 2010, I posted “San Diego real estate 2010 2nd. Half Outlook … double-dips†where I predicted the San Diego real estate market was headed for a double dip.
The latest Standard & Poor’s/Case-Shiller National Home Price Index showed that U.S. home prices fell 3.9 percent during the last three months of 2010, back to where they were at the beginning of 2003.
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.
Eliminating the Home Mortgage Deduction
San Diego home for sale
Since being put in office, the Obama administration has been putting out feelers about possibly reducing and/or limiting the home mortgage interest deduction. Now after unbridled deficit spending, the administration is once again looking at the home mortgage interest deduction.
Rather than directly taking blame for reducing or eliminating this wildly popular subsidy, Obama appointed a panel to look into ways of cutting the deficit. To say this panel was bipartisan would be a stretch, as few of its members were conservative thinkers. What better way to eliminate a popular deduction than by shifting the blame to some bipartisan commission’s recommendation?
In a recent small poll, five out of the eight professors/economists thought that reducing or eliminating the home mortgage deduction would be a good way to cut the deficit. Read more
Coming Double Dip For Real Estate
Real-estate attorney Stephen Meister on why he feels a double-dip recession is coming in the housing market.
httpv://www.youtube.com/watch?v=hhlV6vfEKFY
Be sure to view my recent prior posts on the double dip for San Diego housing market:
San Diego real estate 2010 2nd. half outlook
San Diego home value forecast
Housing Market – Another Dip Forecast
Housing numbers aren’t great now, and MoneyWatch real estate blogger Ilyce Glink believes things will only get worse this spring. Here’s why:
httpv://www.youtube.com/watch?v=ENeLnP-sCYc