We would love to make a prediction on when the market is going to return but not even well-respected anylist can predict when or how long is going to take, some respected anylist say that is just around the corner some other say that is not possible to say when, some other say that is just around the corner.

 

Lawrence Yun, chief economist for the National Association of Realtors, expects a "soft" first half of this year for housing and the economy and then "notable improvement" in the second half of the year. But U.S. Treasury Secretary Henry M. Paulson Jr. notes in a recent speech that "most forecasters expect a prolonged period of adjustment" in housing.

"The number of unsold homes on the market today is at or near a record high. Reducing inventories will require that housing prices drop much further, and that builders refrain from putting up new homes," said Global Insight economists Brian Bethune and Nigel Gault in a research note. "Our view is that housing starts will drop more than 15% from current levels, before turning around late this year."

Although housing starts are still falling, they are doing so at a slower rate than in recent months. This is why construction spending on single-family homes fell just 3.4% in May, the second-smallest drop in 10 months," they added. "Going forward, the declines will continue to shrink, and housing will become a progressively smaller drag on real GDP growth.