More than 100 economists, real estate experts and investment strategists projected the path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years. And the forecast isn’t pretty.
According to the MacroMarkets survey released today, experts predict home prices will gain just 1.1 percent annually over the next five years.
“Expectations for home price performance in 2011 has become somewhat less negative,” said Robert Shiller, one of the creators of the Case-Shiller index and a co-founder of MacroMarkets. “Unfortunately, the average projection is somewhat more negative for each of the following four years.”
The glacial-paced growth is even more disappointing considering the record low mortgage rates, experts said. And no matter how much effort the government puts into correcting a problem, most of the experts said a solution should come from the market.
While 73 percent of those surveyed believed further government action is “highly likely,” 57 percent said government action is undesirable and 49 percent said it is unnecessary. – Adam Fusfeld
September 22, 2011 at 10:34 am, Anonymous said:
Blame Obama as usual, This guy destroyed the world in one single term in office. Hey, Theres a remote village in Kenya that missing their village idiot! Tell them we have him and will pay for his return.
September 22, 2011 at 10:37 am, Anonymous said:
Oh yes..Gloom and Doom…in the exurbs maybe.
Even downtown Detroit is coming back.
Such a ridiculous article.
September 21, 2011 at 5:15 pm, Anonymous said:
Which is what should be considered NORMAL. Housing prices arent suppose to be investment vehicles for their sale prices as they have been in recent times. They should be investments in terms of income they produce or as actual places you live that appreciate slowly over time based on mortgage payments or at the very least a place of stability (instead of having to move every time your lease is up).
September 21, 2011 at 7:07 pm, Anonymous said:
A gain???? Home prices will be lower in 5 years than today.
September 21, 2011 at 9:04 pm, Anonymous said:
It won’t be lower because people are buying cash, they don’t have mortgage like before that any loser was buying expensive properties, those wannabee didn’t have any money, now the real money is buying