Foreclosure homes continue to be the bane of the nation's economic existence. Analysts believe that as long as the prices of homes are declining, the housing market will not gain much traction. And as long as housing is in poor condition, so the general economy would be.
Earlier predictions of a 2012 housing industry recovery have been countered by a number of analysts as housing prices continue their descent. Prices of residential properties are still dropping, according to figures gathered as of October 2011.
Contradicting predictions for the housing industry
Some market observers have earlier predicted that housing will recover by 2012. Now, a lot more are saying that recovery will not start until 2013. It is enough to confuse even the most uninterested bystander.
For those who predict a gloomy 2012 for the housing industry, the main argument is that prices of homes are unlikely to rise by next year, owing mainly to the excess supply of foreclosure homes for sale. But home prices are just one element affecting the overall economy, there is also the unemployment level and the effect of the European crisis on local home soil.
Is anything good happening in housing?
Despite the poor prognosis, Americans can take heart from the fact that the pace of decline in housing prices has slowed down. They are still declining, yes; but the percentage of decline is smaller compared with a year ago.
This is not reason enough to rejoice, but the fact is, we can at least say that things are not getting any worse. Government foreclosure programs have fallen short of expectations, but this does not mean that we are out of options. Revitalizing homeownership, particularly in areas that have strong employment, educational institutions and private companies, is one way of helping the market recover faster. With the prices of foreclosure homes as they are, this may not be as difficult as most of us seem to think.
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