An ongoing crisis in the US real estate market will not be strong enough to push the country into an economic depression, analysts have said.
America is currently experiencing a surge in bank repossessions and has seen prices plummet in most areas.
But buying has picked up in a few states, providing what some experts have said could be early glimmers of recovery.
Online forecast specialist Housing Predictor now says that while still serious, the current housing downturn will not be enough to force the economy into a long-term slide.
The firm said:
“Some housing markets are beginning to approach their bottoms from an economic point of view as the commercial real estate market begins to unwind with falling values.”
The company also said the likelihood of another great depression like that of 1929 was so remote that “analysts aren’t even providing a percentage “.
Housing Predictor lists areas such as Biloxi, Mississippi, and Austin, Texas among a run down of US areas still showing price rises. Biloxi is expected to see the highest rate of growth in the US this year at 4.9 per cent.
Cities such as Las Vegas, Nevada, and Miami, Florida, will see the biggest price falls according to the site, at 23.7 per cent and 22.1 per cent respectively.
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