Most economists reckon a major double-dip in the housing market is unlikely, but they do expect a modest summer decline thanks to the expiry of government programs that draw demand forward and propped up home values earlier this year…[prices] should rise a meager 0.2 percent this year, followed by another 1 percent increase in 2011…
US Housing Market to avoid a double dip
August 12, 2010
There’s been a lot of talk about a double dip recession. No, that doesn’t mean the social faux pas of dipping your tortilla chip in the salsa twice, it means that the worst isn’t necessarily over.
While it’s hard to say whether or not this will occur in the overall economy, projections indicate that the housing market is on the road to recovery. This year, for example, projections indicate that in the 20 largest US Metro areas prices will actually increase modestly.
According to Reuters:
So it looks like the US housing market might be on solid ground. That’s not to say that the entire US economy will weather the storm, but let’s cross our fingers.
Also, this projection should be taken with a grain of salt (as always). Projections in May concluded that there would be a 1.4 percent rise in 2010 and a 3 percent rise in 2011. Optimism has waned, however, in the face of lower-than-expected employment numbers.