Hopes of housing recovery disappearing amid latest economic setbacks

Hopes of a housing recovery this year have faded amidst the recent economic turmoil.According to a CNNMoney article, the latest economic turmoil has all but assured a housing market recovery will not be taking place during 2011. In fact, some companies believe a recovery may not occur until 2013.When analyzing the home price trends of 384 markets based upon the Fiserv/Case-Shiller indices, the article states that median home prices may not reach their first quarter levels again until the first quarter of 2013 because of the recent turmoil.Furthermore, home prices during the first quarter of 2011 were not improving, either. Data shows that home values declined in 302 of the 384 markets, falling by an average of 5.1 percent compared to the previous year.Due to the recent deficit debates and continued struggles of the nation's job sector, Fiserv had already pushed back its projection of a housing market recovery by three months. Now, after the stock market has fallen significantly, the company pushed its projections back to the second quarter of 2012.Between March of this year and March 2012, Fiserv expects home prices to decline by 3.1 percent, on average. After this point, it forecasts a 2.7 percent average increase until the first quarter of 2013.In Houston, properties have increased in price recently, according to Metrostudy. However, with the recent turmoil, this trend could turn around quickly.Courtesy of 2M Realty News

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