With housing recovering slowly, most economists predicted in a recent survey that it would take at least five years for average home prices to climb back to the levels they commanded in 2006. This year, some hard-hit areas may see another dip, but properties values will most likely rise.
“Softness in the summer months will be followed by firming conditions and momentum as the year unfolds and the economy strengthens,” says Robert Denk, an economist for the National Association of Home Builders.
However, analysts at Moody’s Analytics say that the possibility of double-dip recession and another 20 percent decline in home prices has risen to about 25 percent.
Sources: The Wall Street Journal, Nick Timiraos (08/11/2010) and Reuters News (08/12/2010)