Real Estate Market

According to Moody’s, some analysts are predicting the housing market’s bottom is in sight, probably sometime towards the end of 2009. So while real estate values may continue to fall through this year, a predicted end is good news, indeed, projecting 2010 to set us on an upward climb.

In terms of what’s keeping this bottom from coming, other analysts point to the glut of bank-owned properties being held and unsold, blaming them in part for the delay. Despite the surge in foreclosure sales recently, these analysts are predicting lowered home values won’t be stopping anytime soon. In a recent Wall Street Journal blog article, Michael Corkery quotes analyst Ivy Zelman, who says without the inventory of these homes being cleared out, the market cannot fully recover.

Zelman states, “Prices are not going to stabilize until this vacant inventory gets worked through. This is why the housing market will not bottom this year.”

However, in a recent article, David Crowe, chief economist for the National Association of Home Builders predicts, “We should come out of 2009 on an upswing. It won’t be strong, and we will still have home-price declines throughout the year, but it will be an upswing.”

Of course, the most reliable predictions relate to local markets, as all real estate data fluctuates from region to region. If you’re looking for advice in a given area, sweeping generalizations may not apply.

But when it comes to 2009’s real estate market, one thing’s for sure: time will tell.