Dismal scientists fear dismal housing recovery

Slow_sign1 For some time, The Real Estate Cafe has been saying that client house hunts that once took two to three months in Greater Boston, are now taking two to three years.  That was before this stunning headline,  "Economists see credit problems as bigger threat than terrorism," revealed these findings:

Asked to look five years into the future, 42 percent [of business economists] expected U.S. home prices to remain flat, 41 percent said prices should rise, and 16 percent predicted prices will fall

Only one in five of those surveyed predicted a "meaningful" recovery in U.S. housing markets before the second half of 2008. About 38 percent expected a recovery in the second half of 2008, while 42 percent said housing markets won’t turn around until 2009 or later.

If you are a home buyer, will the dismal survey findings above cause you to extend your house hunt by months or years?  Or will you be bargain hunting this Fall and winter, as seasonal price reductions create attractive home buying opportunities?

Join the discussion on our social networking site:  Wait 2.0?  Will dismal housing forecast extend househunts another 2 years?

Posted in Housing forecasts, Real Estate Bubble, Timing the market

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