Report: Home sales to experience 2.3 percent decline in 2011

According to a recent poll conducted by Reuters, home sales will experience a 2.3 percent decline in 2011. This downward trend would halt a six-month period that witnessed a pick-up in sales.

Twenty-six economists contributed to the report, which estimates the drop during 2011 will be followed by a slight recovery in 2012. Aside from the recent positive trend, the market has experienced a four-year slump, despite federal programs providing aid and interest rates currently residing at all-time lows for those seeking relocation.

One major contributor to this year's decline will be the slow foreclosure process, some experts said in the report.

"One of the big question marks that people are not paying enough attention to is not just the number of foreclosures, but the speed of foreclosures," said David Wyss, chief economist at Standard & Poor's. "The time it takes to do a foreclosure has doubled, and that means you are dribbling out these foreclosures over a much longer period of time. You have to clear that overhang of homes."

Another report supports Reuter's claim that homes sales will drop this year. According to the National Association of Realtors, pending home sales declined for the second-straight month in January. 

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