Unemployment Seen As Reason For Gloomy Housing Forecast
CHICAGO (WBBM) - There’s a gloomy forecast about the housing market.
LISTEN: Newsradio 780’s Regine Schlesinger Reports
A survey by Trulia.com finds more than half of Americans believe a housing recovery won’t happen until 2012 at the earliest.
Rick Sharga with RealtyTrac predicts next year will again be a tough one. “We see record levels of foreclosures this year and next before things finally start to slow down in 2012 and we don’t see a full market recovery probably until 2014.”
Sharga and Trulia’s Pete Flint believe the big problem is stubbornly high unemployment.
Sharga says, “Until you see consumer confidence come back–and that won’t come back until we start to see continuous job creation–it’s going to be difficult to see any kind of real recovery in the housing market.”
Sharga and Flint also predict that except within a few pockets of the country, home prices will continue to drop in 2011.