Wednesday, March 31, 2010
According to Peter Morici, professor of economics at the University of Maryland, the home prices that approach what they were before the bust are at least five years away.
The housing values will rise 20 or 25 percent and then more gradual appreciation, expects Morici. He believes that the problem is the oversupply of housing. According to him, the supply is a couple of years ahead of demand.
However other housing observers were less optimistic. Joseph Brusuelas, president of Brusuelas Analytics says that foreclosures are still going to bite the market. Given the preponderance of negative housing data, we may see another leg down, he added.
The housing values will rise 20 or 25 percent and then more gradual appreciation, expects Morici. He believes that the problem is the oversupply of housing. According to him, the supply is a couple of years ahead of demand.
However other housing observers were less optimistic. Joseph Brusuelas, president of Brusuelas Analytics says that foreclosures are still going to bite the market. Given the preponderance of negative housing data, we may see another leg down, he added.



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