Everybody is on the forecasting bandwagon these days, here’s BW’s crack at it:
By 2012 we may finally get back to blissful boredom. With any luck, three years should be long enough for the U.S. economy to recover and for the nation’s housing inventory to shrink to more normal levels. At that point, housing will return to its old ways, with prices governed not by national mood swings and global credit crises but by local issues ranging from zoning to immigration to job growth.
Prices? While they’re likely to keep falling a while longer under the weight of foreclosures, the market is definitely closer to the bottom than the top. “We expect prices to drop for another year and then stabilize before starting to rise with incomes,” says Standard & Poor’s Chief Economist David Wyss. Moody’s Economy.com predicts the S&P/Case-Shiller U.S. National Home Price Index, maintained by data specialist Fiserv, will fall about 16% this year before regaining ground.
While the year 2012 sounds sexy enough to sell some magazines, all of these forecasts sound safe and vague – if any of them end of being right, it’ll just be luck.
They also included the list of places where it would be ideal to start over, for those who are looking to leave – none of their picks were in California:
Anchorage, Alaska was #1 on their list!