Home prices in the United States hit their floor during the beginning portion  of 2010 and are  likely to begin trending upward next year, according to a panel of elite economists surveyed by the National Association For Business Economics in  its October 2010  outlook .

       “The housing recovery is intact, but lukewarm overall. Home prices have hit bottom,” NABE stated in its report outlining the survey results.

The panel anticipated a 1.5 percent drop in residential home values this year, and that trend has already been registered through the first half of 2010, NABE explained.

The group of economists foresees advances in home prices of 1.2 percent over the course of 2011,  although this trend is not likely to keep up with inflation.

NABE panelists expect any evidence of  home  value weakening  after tax incentive to be short lived. The prediction is  that the  government’s recent stimulus measures in the form of tax breaks for homebuyers vary widely. Approximately one in three feel that a continuous  relapse will follow the  loss in incentives, while the remaining two-thirds think  an underlying recovery is in place.

When it comes to the distressed side of  the market, it is clear that the nation’s high unemployment rate is now one of the main factors involved in default among struggling homeowners. Helping people get back to work is of the utmost importance  to a recovery in housing and getting a handle on still-rising delinquency numbers. But NABE’s panel warns that the job market will be slow to improve.

The economists are predicting  month over  month gains in payroll to average 150,000 people or less until the latter half of 2011, at which time gains will improve to a range of 170,000 to 175,000 new jobs. The unemployment rate is expected to maintain  at over 9.5 percent through midyear 2011, before easing only slightly to 9.2 percent by the end of next year.

The  panelists cut their projections on large scale economic growth. Those projections now remain below average through year-end, the organization explained.

“This summer’s slowdown has exposed the economy’s sensitivity to wealth losses, the unwinding of debt, and the reductions in economic stimulus,” said Richard Wobbekind, NABE president-elect and associate dean of the Leeds School of Business at the University of Colorado-Boulder. “Confidence in the expansion’s durability is intact, but recent economic weakness has prompted many panelists to scale back expectations for the year ahead.”

Source: dsnews.com

What Does This Information Mean????

Essentially that home prices have hit bottom, and are trending upward in some areas. The economy plays an important role in home values, and prices are expected to rise further in 2011 as employment increases. Are you interested in selling your home, or purchasing a home? If so give me a call, for a no obligation, free consultation.

Carlos J. Amador (562) 833-4292