Home prices reached a bottom in the first-half of 2010 and should rise next year, according to a survey of professional economic forecasters released Monday afternoon.
"Home prices have hit bottom," the National Association of Business Economics declared, noting that values fell 1.5% during the first six months of the year.
The NABE outlook panel is predicting that prices could rise 1.2% in 2011 but warned that the projected gain, "will not keep up with board measures of inflation."
The periodic survey was conducted during the first three weeks of September before major banks started halting foreclosures.
Meanwhile, housing starts will get a boost next year but still remain at historically low levels. The survey shows 2011 starts totaling 750,000 units, a 25% jump year over year.
"The housing recovery is intact, but tepid overall," NABE said in a statement.
The NABE panel also sees no improvement in the employment picture. The group sees monthly increases in payrolls averaging 150,000 by the second quarter of 2011, but it won't be enough to bring the unemployment rate down to 9% by yearend.
