In the continued absence of real demand and in the face of aberrant forces juicing housing supply, economists are sliding beads on their abaci over to the negative side in their 2011 forecasts for home price trends. The Wall Street Journal’s Nick Timiraos reports that a year-end survey of analysts and economists by MacroMarkets ” shows that economists expect home prices to fall by 0.17% in 2011 as measured by the S&P/Case-Shiller index of home prices in 20 U.S. cities. The average forecast for 2010 calls for the Case-Shiller index to ultimately show that home prices ended the year down 1.13%. Overall, economists expect home prices to rise by 7.2% over the five-year period ending in 2014. In May, that forecast called for a 12% rise in prices over the span.”
Analysts in droves revise their home price forecasts downward for 2011
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