Forecast predicts further declines in housing market

Experts sharing their predictions for the 2011 Zillow Home Price Expectations Survey suggest U.S. home prices will decline 1.57 percent in the fourth quarter of 2011, and continue to decline until the market hits rock bottom in late 2012 or early 2013.

After 2013, however, experts foresee the housing market to stabilize at an annual appreciation rate of 3 percent through 2016.

Stan Humphries, chief economist for Zillow, said the nation's top housing experts believe the housing market is currently working its way down to the bottom before it can rise up again.

"Negative equity, unemployment and low consumer confidence remain the key factors delaying a true recovery," Humphries said.

Helping struggling homeowners and communities hit the hardest with the economic downturn, the homebuilders industry remains dedicated despite poor business.

The National Association of Home Builders reported that homebuilders across the country are sacrificing their time and money to help rebuild communities that have suffered with the subprime mortgage crisis. While business for new home construction has plummeted in the past few years, homebuilders are still working to rebuild the housing market to preserve the dream of homeownership.

“Home builders’ businesses have been suffering for years, but as long as we are physically able to help others who can’t help themselves, we will be out there giving back to this community,” said Bob Bassett, board president of Lee BIA Builders Care.

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