Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.

Ask me later
No thanks

Sep 18th
Lost Password? Register
Home arrow News arrow North America arrow Economists and real estate experts gloomy over US property outlook

Economists and real estate experts gloomy over US property outlook

Thursday, 29 September 2011


The outlook for the United States residential property market is still gloomy despite some local real estate markets performing well, according to new research.

Five years after the peak of the market prices are still not rising overall, with a projected increase of just 1.1% for 2011, the research report from MacroMarkets shows.

It is the result of surveying the views of real estate experts, investment and market strategists and economists on their home price expectations.

It says that although some local real estate markets are stable or strong, more broadly, fundamentals in the US housing market remain very weak despite record low interest rates. The dimming outlook for national home prices has also been impacted by other factors that are shaking economic confidence globally.

‘Markets and government institutions are visibly struggling to respond consistently to an unprecedented rash of crises and conflicts. These struggles diminish confidence, which compounds the underlying economic stresses and lowers expectations,’ said Robert Shiller, MacroMarkets cofounder and Yale University professor of economics.

The MacroMarkets home price expectations survey now says that home prices will grow at a mere 1.1% nominal average annual rate through to 2015.

‘Expectations for home price performance in 2011 has become somewhat less negative. Unfortunately, the average projection is somewhat more negative for each of the following four years,’ added Shiller.

Terry Loebs, founder of Pulsenomics, the firm that conducts the survey for MacroMarkets, noted that the data still reveal a wide variety of individual views among panelists regarding a recovery in the US housing market.

'The erosion of price expectations in the face of record low mortgage rates and the wide dispersion of views among many professional forecasters are symptoms of persistent dysfunction and imbalances in this country’s housing market,' said Loebs.

In the September survey, the panelists also offered their views of the likelihood, desirability and necessity for further government intervention in the US housing and mortgage finance markets in the coming 12 months.

Almost three quarters, 73%, of the respondents who shared a view think that further policy action is highly likely or likely, while more than half, 57%, said such action is undesirable, and almost half, 49%, said additional government action is unnecessary.

‘This data suggests that regardless of when and how housing recovers, controversy will persist regarding the role of government in the market,’ explained Loebs.

More than half of panel members who indicated that more policy action is desirable or necessary suggested specific measures the government might focus on.

‘We received a variety of constructive proposals. Several panelists clearly want or expect the government to be a catalyst for more effective mortgage refinancing and modification  initiatives, as well as rental and other home equity conversion programmes,’ added Loebs.


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here

West Tower

West Tower

Car park

West Tower

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

West Tower

North America: Top Headline

Waterfront homes in the US command massive premiums, research showsWaterfront homes in the US command massive premiums, research showsA typical oceanfront or lakefront family home in the United States is worth more than double the median value of all homes, and in some locations 10 or more times, new research shows.

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.


Company news

Estate and lettings agents UK advert campaign launched

The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have launched a new regional TV campaign to raise awareness among consumers of the importance of using an NAEA or ARLA licensed agent.

Finance Update

Skipton announces new buy to let fixed rates

The Skipton Building Society has launched a new range of buy to let seven year and five year fixed rate products.


Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.



Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our North American property and real estate news feed (RSS)