Housing Market Predictions For 2011

Consumers are desperate for relief, but it seems that it's not around the corner. Real estate market is still flat because prices are constantly going up and down. Although relief and recovery is in sight, it's out of reach in 2011 as some experts predicted. Battered by negative equity from the past years? Here are some 2011 predictions that allow you to look inside that bag of optimism for relief and recovery.

1. Case-Shiller Home Price Index - Further 7.1% drop in home prices into the second quarter of 2011.

2. RealtyTrac (Rick Sharga) - Foreclosure filings will climb by around 20% in 2011.

3. Mortgage Bankers Association (MBA) - In 2011, the average interest rate on 30-year fixed-rate mortgages will reach 5.3%, and the number of refinance loans might drop by as much as 66 percent while home purchase loans will rise.

4. University of Chicago (Economics Professor Casey Mulligan) - Home values will be significantly different this year than they were in 2010.

5. Wells Fargo Securities (Senior Economist Mark Vitner) - Foreclosure will continue to push home prices down which puts housing in the water all through the middle of 2011.

6. US Federal Reserve committee - In 2011, Housing market will weaken further (further price declines) due to the low demand and high inventory of foreclosed homes.

7. Trulia.com (Chief Executive Pete Flint) - Housing demand in 2011 will reduce because of the rising mortgage. Homes prices will decline between 5-7% in the first half of the year.

8. Fannie Mae - 2011 will be a sluggish year for the housing market.

9. Moody's Analytics (Chief Economist Mark Zandi) - Home prices will decline. An 8% drop in home prices has been predicted through the third quarter of 2011 which can result to a 34% drop in home values.

10. Zillow (Chief Economist Stan Humpries) - Housing market will hit the bottom in the third quarter of 2011 and it's going to take time before a quick rebound.

The experts have spoken. As much as they would like to tell people that 2011 is the year the US economy recovers, but lying would just make matters worse. But as Professor Mulligan (The University of Chicago) said, "Predicting the future is difficult," so prepare yourself with these market predictions from these 10 credible sources.