2011, U.S. home prices only 1.0% expected

U.S. house prices expected 2010 growth of 1.1%, 1.0% rise expected in 2011

* One-fifth of the analysts said, prices will not re-explore the high in 2006

Reuters, New York, November 18 - --- Reuters poll said the U.S. housing market next year will be delayed, because there have been a foreclosure case, the employment situation and the poor, making the housing market, weak demand over.

Recovery in the housing market is expected to continue, but poor material price increase next year. Home prices fell in 2006 about one third of the high. Median forecast of a Reuters poll, expected in 2010 house prices rose only 1.1% rose 1.0% in 2011.

For next year's expectations and August surveys of magnitude, and even keep up with next year's consumer price index (CPI) expected growth of 1.6%.

Steady next year, 1,100 million Americans are expected to not be happy that their house prices even lower than bank loans, so that these people can not refinance their loans or purchase new homes.

"Housing market activity may have bottomed out, but the road to recovery will be long." Mortgage insurers PMI Group Inc. Principal analyst David Berson said.

Atlanta, Morgan Keegan & Co. Economic Advisory division, said Donald Ratajczak, the price to return to 2006 levels, it will take up about 35% of the expected time it would take ten years or more.

But analysts to answer this question, only one fifth of the expected price will not return to 2006 highs.

However, it is obvious that the real estate market remains under pressure on housing starts fell to .10 minimum level of one and a half, mainly due to significant reduction in condominium construction.


** Affordable **

Survey shows U.S. housing prices are pretty reasonable, and consistent with the previous survey to 1-10 minutes to calculate, a representative of a very underestimated, the results of the survey is 5. But on the survey median forecast, the future prices and 5% of the fall.

The U.S. unemployment rate remains stagnant at 9.6% of the high points, the housing market pessimism continued to grow.

Toronto Capital Economics analyst Paul Dales said the United States: "When the impact of weak economic conditions continued to demand pushed up foreclosures continue to supply, the price was no way up."

In addition, there are signs that foreclosures reached a record high, so that those who own property insecure, do not want to buy may be rapidly depreciating assets.

Government efforts to solve the problem is difficult mortgage paid off, because banks are concerned that they may not afford another round of bad debt write off. (End)