Home prices that approach what they were before the bust are at least five years away, says Peter Morici, a University of Maryland professor of economics.
“I think we’ll see housing values rise 20 or 25 percent and then more gradual appreciation,” Morici says.
The problem, he believes, is the oversupply of housing. “Supply is a couple of years ahead of demand,” he says.
Other housing observers were less optimistic. “Foreclosures are still going to bite the market. Given the preponderance of negative housing data, we may see another leg down,” says Joseph Brusuelas, president of Brusuelas Analytics.
Source: Bloomberg, Courtney Schlisserman (03/30/2010)