Economists, builders, mortgage analysts fear 'lost decade'
(NEWSER) - Even more bad economic news from a report released today: Housing prices will remain depressed for years, dropping by an expected 2.5% this year and rising only 1.1% each year through 2015, according to the survey of more than 100 economists. Since the 2005 peak, housing prices have dropped 31.6%, so if this forecast plays out, prices will recover little of what has been lost—leading to what the Wall Street Journal calls a “lost decade.” In order to get the housing market back on its feet, the economy needs to add jobs, but that’s a difficult prospect when the economy, in turn, needs a job boost housing would typically provide. More»
