A House for sale is portrayed in Gary, Indiana, March 31, 2011.
Credit: Reuters/Eric ThayerNEW YORK | Fri 09/09/2011 10:21 EST
NEW YORK (Reuters)-United States struggling real estate market should fall a bit more as he searches for a Fund, but domestic prices are seen running up modestly in 2012, according to a Reuters poll released on Friday.
Economists were divided on whether the worst was over for the housing market by the end of the year or if it will take longer to arrive at a floor.
Existing home sales should improve only modestly. Search forecasts are consistent with the expectations of the housing sector will continue to limp along in a weakened State in the coming years.
Housing has been unable to find its footing since its collapse in 2007, despite government programs of several billion dollars and ultra low interest rates.
In fact, adjustable mortgage rates and fixed a year reached new record minimum for the week ending 8 September, but analysts did not expect to stimulate buying a race.
Concerns that another recession is imminent, high unemployment and tight credit kept buyers from the market, leaving a shortage of houses for sale that has driven down prices.
Although called "anguish" sales at reduced prices drastically helped absorb some of the houses on the market, foreclosures in course should keep the anemic market.
"There is still a huge pipeline of homes that will be blocked up and the weak labour market certainly isn't helping," said Scott Brown, Chief Economist at Raymond James, in St. Petersburg, Florida.
Analysts said a housing market recovery is dependent on improvement of labour market and the wider economy.
"A major concern is that you have a lot of homes where the mortgage holder is still underwater and most of these owners will continue to make payments," said Brown.
"He gets to be a problem, however, if anyone loses his job, someone gets sick, there is a divorce or something where the House must be sold".
U.S. home prices-measured by Standard & Poor 's/Case-Shiller 20-City composite index Home price-will fall 3.8% for the year, before stabilizing and gaining 0.8 percent in 2012, according to the average forecast of 22 economists in Reuters poll taken last week.
The expectations were eased previous Reuters poll in June, which forecast prices would fall this year and 5.0 percent increase just 0.5% year around housing.
The forecasts for the evolution of the domestic price index for this year had a wide variety, a decline of 14.0% for a gain of 0.1 percent. Predictions for 2012 had a small space, a 6.0% decline to a gain of 4%.
Of 28 economists polled, 14 said that prices had any funds already hit this year or would be for the fourth quarter. Twelve respondents said that prices will not reach a trough until 2012 and 2013, while a forecast an expected it would take until 2014.
In the third quarter, the pace of existing home sales should come to an annualized rate of 4.78 million and will be until edge 4.95 million in the fourth quarter. Sales of previously owned homes were at an annual rate of 4.67 million units in July, according to data from the National Association of Realtors.
Economists saw the rate of home sales reaching 5.1 million for the first and second quarter of next year.
"New foreclosures peaked in 2009, but the inventory of foreclosed homes will decrease slowly," said David Berson, Chief Economist at mortgage insurer PMI Group.
Economists forecast the average rate of 30-year mortgage would be 4.5% for the year, lower than the June forecast for 4.82%.
(Search by Sumanta Dey and Somya Gupta)
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