Analysts: Another year of stagnant housing

The U.S. housing market has yet another year to go before the industry can expect a sustained recovery that won’t change as quickly as the seasons, analysts now say. According to CNBC, improvements in the figures for building permits, housing starts and existing home sales seen in late 2010 have already reversed, and mortgage applications are on the decline, too. Propping up the housing market have been cash buyers, particularly ones from abroad, but that’s not enough to nurture an actual rebound. “You see people in the malls and restaurants, but when it comes to a big purchase like a home, there’s not much confidence,” said Michael Freed, a real estate attorney at Brennan, Manna & Diamond. “Add that with the dynamics of tougher lending restrictions and higher down payments, and homes are not going to sell.” Even the National Association of Realtor’s chief economist, Lawrence “Sunny” Yun (nicknamed for his usually rosy picture of the market), conceded that “there are too many vacant homes and excess inventory in the system now to create a stronger housing market.” [CNBC]