Rising Inventories Hurt Recovery Prospects
Housing economists are increasingly pessimistic about prospects for a recovery in the housing market before 2012.
Half of the 109 economists and analysts surveyed this month by MacroMarkets LLC, a housing investment analysis company, believe home prices will bottom in 2011. The rest think it will take until 2012.
Housing inventories are rising in many areas and that is contributing to the pessimism. "We'll see some additional price declines," said David Berson, chief economist at mortgage-insurer PMI Group Inc. "The gains we've seen can't be sustained given the current supply situation."
Source: The Wall Street Journal, Nick Timiraos (10/26/2010
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