What Does Next Year Have in Store For Housing?

Here is what C.A.R. is forecasting for 2012:

While the probability for a double dip recession is
higher, the most likely scenario is for a
continuation of the slow-moderate growth we have
seen for the last few years. The outlook is for
modest but positive growth with GDP coming in at
1.7% in 2011, 2.0% in 2012.
We are moving forward, albeit bouncing along the
bottom for most of 2011 and we can expect the
same for next year, with a flat sales forecast for
2011/2012 (-0.1% year-to-year loss in 2011 and
1.0% gain in 2012).
Prices are expected to come in 4% below 2010
levels and should show a modest gain in 2012
(+1.7% year-over-year).
Overall, weve seen uncertainty and a lack of urgency put a
damper on the housing market in 2011.
Hopefully, 2012 will prove less uncertain and could even
show signs of urgency as current prices and mortgage
rates are phenomenal and will not stay this low forever.
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Whats in Store for the Housing Market in 2012?
2011 was supposed to ratchet up steady, if not, robust growth in the US economy. However, several economic and geo
political events tripped up the economy during the year that have left would be home buyers dazed and confused about
jumping into the housing market.
Looking in the Rearview Mirror: 2011
Heres what we know, 2011 has been wrought with
uncertainty and unexpected shocks that has hobbled output
in the US and around the globe and caused a huge crisis of
confidence for consumers, investors, and businesses alike.
The list of wildcards is long: the DC midterm elections, the
change of power in the House, the Japanese earthquake
and tsunami, the Arab uprising, the oil price shocks, the
European debt crisis, the battle over debt ceiling, the
downgrading of the US long-term debt, and the fallout
with the volatility in the stock market. All of which have
left output through the first half of the year below the
growth rates that accompany a recovery. The probability of
a double-dip recession has gone up and has caused
economists far and wide to downgrade their outlook for
this year and next.
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