Weak U.S. housing rebound slows economic growth for 2011

New York /
Jan.January 12, 2011 12:36 PM

Held back by foreclosures, the pace of the housing market’s rebound will be so weak that it won’t be much help in spurring economic growth, Bloomberg News reported. According to Fannie Mae, home prices will probably start to gain in the third quarter of 2011, and rise .6 percent for the year, the first annual advance since 2006. Economists predicted last month that residential investment, an inflation-adjusted measure of homebuilding, will increase 9.6 percent in 2011 after five years of declines to a record low. “There’s a good chance of a housing turnaround this year, but it’s not going to be enough to give much help to the economy,” said Karl Case, co-creator of the S&P/Case-Shiller Index that tracks U.S. home prices. “We’re coming off 50-year lows and we still have to deal with the foreclosure mess.” According to estimates by the Mortgage Bankers Association and the National Association of Realtors, home sales and construction will rise in every quarter of 2011. But the biggest challenge to the overall recovery may be lender delays in pushing through foreclosures, said Mark Zandi, chief economist at Moody’s. [Bloomberg]


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
A collection of images from the Turkey Track Ranch listing (Icon Global)
An 80,000-acre ranch in the Texas Panhandle lists for $200M
An 80,000-acre ranch in the Texas Panhandle lists for $200M
The price of a new home in China’s largest cities fell for the first time since 2015
New home prices in China’s largest cities fall for first time since 2015
New home prices in China’s largest cities fall for first time since 2015
MLB teams agree to pay for some minor leaguers’ housing
MLB teams agree to pay for some minor leaguers’ housing
MLB teams agree to pay for some minor leaguers’ housing
Donal O’Sullivan (Image via Navillus)
Ex-Navillus CEO found guilty of cheating unions
Ex-Navillus CEO found guilty of cheating unions
5 perfect new development homes for you and your dog (or cat)
5 perfect new development homes for you and your dog (or cat)
5 perfect new development homes for you and your dog (or cat)
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...