A Real Estate Recovery in 2013
Economists speaking at the recent annual meeting of the National Association of Real Estate Editors said the housing market likely will not recover until 2013.
Stan Humphries, Zillow chief economist, said home prices continue to decrease, and he sees the “tremendous amount of shadow inventory” delaying recovery. “We think the market will be flat in nominal terms for three to five years,” remarked Humphries. “We are not going to hit bottom and see a V-shaped recovery.”
Meanwhile, Fannie Mae chief economist Doug Duncan said it will be another three years before new household formation and housing starts pick up. Duncan believes home prices will fall another 1 percent to 3 percent before bottoming out in the third quarter.
Both Humphries and Duncan said the federal home buyer tax credits shifted demand so that buyers took action earlier than they would have otherwise. “We’re going to see a payback in July and August,” noted Humphries.
Source: Inman News, Glenn Roberts Jr. (06/07/10)
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Real Estate Recovery Slow, Fed Says
The economy is improving, but recovery in real estate is slow, the Federal Reserve said Wednesday in its beige book report.
The federal tax credit drove an increase in home sales, the report said. But it emphasized that most of the transactions involved lower-priced homes, while prices remained low and residential construction was weak.
The report also said the commercial real estate market remains soft and that there’s a significant excess supply. It pointed to New York and Kansas City as places where the commercial real estate business is worsening.
Source: The New York Times, Javier C. Hernandez (01/13/2010)
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