Housing economists have grown less bearish in their outlook for home prices this year but are becoming gloomier in their views for 2011, according to a new survey.
On average, economists expect home prices to fall by 0.8% in 2010, which means they would have to drop by 2.2% during the second half of the year, according to the survey of 114 analysts by housing futures firm MacroMarkets LLC.
The survey is the first since MacroMarkets began polling analysts in May that didn’t show analysts growing more pessimistic about the current state of the housing market. But respondents have gradually grown less optimistic about prices improving next year.
The average projection forecasts home-price gains of just 0.8% next year, as measured by the S&P/Case-Shiller national index.
That means prices would remain essentially flat for 2010 and 2011.