The state of housing
The U.S. housing market continues to struggle as home prices keep falling.
January 25th, 2011
01:44 PM ET

The state of housing

The housing market is a major indicator of economic strength.

Is that market better today than it was a year ago? Existing home sales are expected to increase 5% to 10% in 2011, according to the National Association of Realtors, and the National Association of Home Builders says new home starts are expected to increase by 21%.

"But what you have to realize is that the bar is so low from last year, that it's not much to talk about improvement," said Guy Cecala, CEO and publisher of Inside Mortgage Finance. "We're improving from a terrible situation, but we're far, far away from any of the housing signs that we saw as recently as three or four years ago."

It is not a healthy market. Foreclosures continue to be a big problem. CNNMoney's Les Christie says 11 million to 12 million homes are still on the brink of repossession.

It all hinges on economic recovery.

"If fewer jobs are lost, there will be fewer foreclosures," Christie said. "If home prices start to rebound, there will be fewer," he said

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soundoff (33 Responses)
  1. SayWhat

    Unless 100% of people in this country attain degrees in something other than business management we will always need worker bees here. We can't just be a math and science economy. Even if manufacturing becomes 100% automated there would still be a need for workers to maintain and service the robots/facilities. Government needs to take a position that lowers taxes on home based industry while increasing taxes on those who outsource. I have no idea why American lawmakers care more about building a global economy when our domestic situation has been deteriorating in the name of globalization. Has anybody ever considered that perhaps we should stop buying tvs, iPads or other disposable gadgets? Maybe a year long boycott of those items would send a message.

    January 25, 2011 at 8:32 pm | Report abuse |
  2. Ernie

    A country that has overspent far beyond their ability to pay it back & then continues with the same liberal dribble about the government fixing the mess they made; will find a dead end street. We The People must put our nose to the grind & take control of our own lives & welfare. Only then will we have the ability to "fix" our government. As long as we have our hands out some self-serving politician will keep spending to stay in office.

    January 25, 2011 at 8:51 pm | Report abuse |
  3. bob

    Luckily, with forclosures on the rise and the housing market collapsing, there are resources out there to educate people about foreclosures, loans, etc. And help aide this process. GoHomebuyer.com is an excellant resource to use and it doesn't cost a thing. I like to belive that lack of education on the most important investment of your life is a recipe for disaster.

    January 25, 2011 at 8:53 pm | Report abuse |
  4. Philip

    The housing "bubble" and bust do not just happen all by themselves. They are manipulations of the Bank for International Settlements that directs the world's federal reserves/central banks including those located in the USA. if you have never heard of the B.I.S., there is simply no way you could even possibly begin to understand how this all works like one big worldwide ponzi scheme that has never been audited by any government, including our own.

    January 25, 2011 at 9:04 pm | Report abuse |
  5. Philip

    Over half of this world's families live on less than the equivilent of 3 dollars per day, and mostly live in nations that the B.I.S. simply will not allow to go in debt, even though they are rich in natural resources. (mostly plundered by nations that are allowed to be in debt) They are debt-free!!!, but they starve while nations who are allowed to be in debt struggle with obesity, like ours. The earth produces roughly 5 times the necessarry food for everyone to survive, yet thanks to this never-audited agency that answers to NO government, there is an unequal and unfair distribution. The federal reserve and central banks located here in the USA should obviously be publicly audited. Why haven't they? Why haven't any of you ever even heard of the B.I.S? Could it be because it's not on tv and it's not what you want to hear anyway? Please do tell.

    January 25, 2011 at 9:15 pm | Report abuse |
  6. Philip

    You hear of the "one world order" conspiracies put forth by crackpots like Alex Jones and that Michael Moore guy that did Farenheght 911. They are pure BS, and are meant to cause you to believe that it's a future event. In reality, it has already happened. There are very few national borders left. Almost all of them have fallen, and form one big worlwide ponzi-scheme financial rulership. They maintain loosely guarded boarders only to maintain nationalism that keeps the worlds peoples divided. This is really how it is folks. Sorry to be the one to tell you. (if you know of these things...speak out!)

    January 25, 2011 at 9:26 pm | Report abuse |
  7. Avsec bostjan

    OBAMA = STALIN = BUSH or USSR = USA at >> http://avsecbostjan.blogspot.com <> http://avsecbostjan.blogspot.com <<

    January 25, 2011 at 9:48 pm | Report abuse |
  8. Avsec bostjan

    OBAMA = STALIN = BUSH or USSR = USA at http://avsecbostjan.blogspot.com WHY YOU ARE RUINED – AUSTRALIAN FLOODS – ARIZONA SHOOTING – REAL WIKI LEAKS OR CIA – ESKIMO SARAH PALIN NOT FOR ME – FREEDOM OF EXPRESSION UNDER LIBERAL/ZIONIST/COMMUNIST/ANARCHISTS OR >>SPAM<< – PRICE ON YOUR LIFE(censorship) – please visit http://avsecbostjan.blogspot.com and watch videos in sequence

    January 25, 2011 at 9:53 pm | Report abuse |
  9. Philip

    @Avsec...have you ever heard of using the human touch? he he

    January 25, 2011 at 10:05 pm | Report abuse |
  10. cat

    why is housing an issue? everyone in america needs a decent humble abode.

    January 25, 2011 at 10:31 pm | Report abuse |
  11. Philip

    @cat...central america?

    January 25, 2011 at 10:34 pm | Report abuse |
  12. liberal!

    Housing is an issue because some people are too lazy to get a job and work for a home they expect the normal middle class citizens to pay for them with their taxes.

    January 26, 2011 at 12:22 am | Report abuse |
  13. ron

    Has any asked why a person realy wants to be a judge. Did you know that for every case they rule in favor of the bank they get a cut of the action?

    January 26, 2011 at 12:28 am | Report abuse |
  14. Jim Davis

    My Wife & I vowed 30 years ago to always live within our means and never spend or commit to paying more than just ONE of us working could afford. Since then, we have each been unemployed at times, had medical problems that knocked us down for several months and seen some days where we paid for food with CHANGE, not dollars. We bought and used lawn furniture for our first Home, and saved for over a year before we could afford a second used car. I rode a bicycle in the Summer and we shared the car that Winter we bought our first Home. We paid more for a Fixed Mortgage because we didn't trust the Bank, Period. I guess we both figured it was better to sleep at night, than have moe THINGS to play with durring the day. Or worrying about paying our obligations on time. Looking back, we would do it the same way again. Peace.

    January 26, 2011 at 1:39 am | Report abuse |
  15. Rebecca

    I'm slightly surprised that people seem to fail to recognize that even acting in a responsible manner doesn't mean you get to keep your home. My husband and I purchased our home with a fixed rate conventional loan, and through no fault of our own it has dropped in value by 40%, which means we are underwater, being unsure about our jobs we have tried (and failed) to sell our home and are trying to secure new sources of income. That being said we might still lose our ability to pay the mortgage, and I have it on good authority the bank will call the note in full if we try to sell the house via contract for deed or any other arrangement. All the news about the new government programs is less than reassuring. I'd actually appreciate suggestions, because we're really running out of options.

    January 29, 2011 at 10:52 pm | Report abuse |
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