Most economists agree home prices will bottom by 2013
Economists expect home prices to bottom by 2013 and will have an impact on the moving and storage industry since they are so connected to each other. Economists predict home prices nationwide will drop slightly in 2012, falling 0.4 percent for the year, according to the latest realtor survey – Zillow – Latest from The Business Journals DBJ Weekend Tech Watch: Home Price Expectations Survey.
For the first time, the economists surveyed were largely in agreement on the trajectory of home prices nationally, signaling that a true bottom may be imminent. The survey, sponsored by the online real estate information marketplace Zillow (Nasdaq: Z) and conducted by Pulsenomics LLC, is based on the projected path of the S&P/Case-Shiller U.S. National Home Price Index during the next five years. Cord Moving and Storage in headquartered in Saint Louis tracks this information carefully since the impact on the moving industry is significant said Tom Layne the Sales Manager.
The survey is based on 114 responses by a diverse group of economists, real estate experts and investment and market strategists, Zillow said.
Still, a majority — 56 percent — also said they believe that, in five years, the U.S. home ownership rate will be below 65.4 percent, the rate recorded in the first quarter of 2012. One in five believe the home ownership rate will be at or below 63 percent, testing or breaking the 62.9 percent rate established in 1965, the lowest on record.
The survey comes as new home sales surged in May to a two-year high and prices rose from a year ago as inventories fell, another sign that the housing market is gaining momentum. U.S. Commerce Department as reported in the latest Business Journals said on Monday sales jumped 7.6 percent to a seasonally adjusted 369,000-unit annual rate, the highest since April 2010.