National Association of Home Builders predicts market turnaround

The nation’s home prices could bottom out as early as the middle of 2009, according to predictions by economists at a National Association of Home Builders conference held last week. Experts cited various factors contributing to the market’s turnaround, including the federal government’s bailout plan, a decline in new housing starts and an expected decrease in interest for fixed-rate mortgages. Average home prices have fallen 20 percent since their peak in 2005, and will likely drop another 10 percent before recovering, economists said.