June 7, 2010
According to Stan Humphries, chief economist for Zillow, the US may not see a residential real-estate recovery until 2013. “The housing recession is not over: Housing prices continue to fall,” Humphries said.
So, why are experts predicting 2013? Check out what Inman News says:
While home sales likely reached the bottom of the current cycle last year, home values in many markets are still in decline, said Stan Humphries, chief economist for online real estate search and information company Zillow.
“The housing recession is not over: Housing prices continue to fall,” Humphries said.
And housing demand may not see a normal balance with new household formation and housing starts until 2013, said Doug Duncan, chief economist for secondary mortgage giant Fannie Mae.
The “overhang or shadow supply” of housing inventory has a lot to do with the drawn-out recovery for the housing market, he noted.
Home and rental unit vacancy rates are running about 2 million units above normal levels, Duncan said.
His forecast calls for home prices to continue to fall this year, perhaps 1 percent to 3 percent more, and hit bottom in the third quarter.
My word of advice for US real-estate agents… be frugal!