Unemployment Seen As Reason For Gloomy Housing Forecast
CHICAGO (WBBM) - There's a gloomy forecast about the housing market.
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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.
