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Reuters: No Improvement In Housing In 2012

From a relentless Reuters:

Home prices close to bottoming, to rise in 2013

By Lucia Mutikani
April 12, 2012

WASHINGTON (Reuters) – The relentless decline in home prices is nearing an end and prices should rise for the first time in seven years in 2013, but a possible new wave of foreclosures could threaten the recovery, according a Reuters poll of economists.

These ‘economists’ must also be the economists for the Obama campaign, since they always predict good news for the Obama administration. Good news that never seems to materialize.

Still, even though they are seldom right, they are never uncertain.

The median forecast of 24 economists polled by Reuters was for the S&P/Case-Shiller 20-city home price index to end the year unchanged

So why isn’t the headline: ‘Economists See No Improvement In Housing Market In 2012’? Because that is what this article actually says.

In fact, the only hint at any improvement comes from a single economist.

"We are expecting a gradual improvement, but if we get a big wave of new foreclosures coming to the market, price declines could be even greater," said Yelena Shulyatyeva, an economist at BNP Paribas in New York

What a daring prediction. ‘Things are certain to get better, unless they get worse.’

The housing market’s collapse pushed the economy into its longest and deepest recession since the 1930s. Historically, housing has led the economy out of recession, but it has been the weakest link in the recovery that started in mid-2009…

Perhaps because it was over-priced housing that got us into this recession in the first place. For which we can thank Jimmy Carter’s Community Reinvestment Act. And every Democrat who has pushed it since.

House prices have so far fallen about 32 percent from their peak at the end of 2005, and an estimated 11 million Americans now owe more on their homes than they are worth.

A resulting tide of foreclosures has held back the housing market’s recovery

But Reuters gave the Obama campaign the headline it wanted. And the casual reader will go away believing that housing is going to boom again, right after the November elections.

If they will just have faith and re-elect Obama.

This article was posted by Steve Gilbert on Friday, April 13th, 2012. Comments are currently closed.

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