Economists Predictions on Housing Market

At the National Association of Realtors® Midyear Legislative Meetings & Expo today two top economists gave their real estate market predictions. Lawrence Yun and Mark Zandi both put jobs at the center of the housing recovery, and said that the Fed will keep mortgage rates historically low for the near future, but differed on how foreclosures would affect the market recovery. Yun predicted that distressed properties (foreclosures and short sales) will make up 30-40% of the market for the remainder of 2010. Also he said that prices will stabilize this year, with a potential for 2-3% growth, and that will prevent more foreclosures and short sales from adding to the distressed properties over the next few years. Zandi has the opposite idea- foreclosures will rise until 2011, and home prices will drop farther this year. 
Read more here.