Categorized | Residential

United States Housing Market Should Hit Bottom in 2012

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Analysts are predicting that the United States residential real estate market will finally hit its true bottom towards the end of 2012. Prices are expected to drop slightly until that point, though at much smaller rates than in the past few years.

While the news that housing prices will continue to fall into the next year is certainly disappointing for homeowners, there is a light at the end of the tunnel. After finally hitting the bottom in 2012, prices will experience a steady increase for years to come.

Analysts don’t believe the future increase will be as large or fast as it was during the real estate golden years prior to the growth of the housing bubble. However, the increases will be strong enough to once again bolster the residential real estate market.

The true recovery of the housing market largely depends on a number of factors including unemployment and consumer confidence levels. Until improvement is seen in those two areas, recovery will not be possible.

Not all analysts agree that the market will start to experience increases after bottoming out in 2012. In fact, some believe that the market will fall another two percent in the years that follow. Most analysts, though, believe that there will most certainly be a growth in prices that is as high as eighteen percent.

The existence of the wide discrepancy between real estate analysts is largely due to the overall instability and economy uncertainty that exists in the United States. As the overall economy stabilizes, it is likely the outlook as to the real estate markets performance in the coming years will be much more certain.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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