The perfect storm of converging crises that rocked US housing is unlikely to abate in 2011, with the albatross of negative equity haunting the market’s future. Foreclosures follow job losses, limiting lending access and erasing the advantage of low interest rates in a seemingly never-ending vicious cycle. See the following article from Money Morning for more on this.
The year of 2010 saw very little improvement in the housing sector, and that’s not likely to change in 2011.
The industry’s weaknesses – high unemployment, tight credit, ineffectual government programs, soaring inventories, plunging prices, and so on – are simply too gaping to be resolved by next year.
Even the normally ultra-optimistic National Association of Realtors (NAR) came out of its annual conference in New Orleans in early November with a frown on its face, predicting that, “nationwide, homeowners can expect little, if any, increase in home values in 2011.”