WSJ–Housing Gloom Deepens

Home sales picked up in September, but the long-term picture for housing is growing grimmer, say analysts and economists who are pushing back forecasts for a housing recovery.

Earlier this year, the housing market appeared poised for a turnaround, three years after it peaked. Federal tax credits for buyers spurred a flurry of activity, and the economy was adding jobs. That led some economists to forecast housing would hit bottom and begin to recover this year.

Now, some economists don’t see a recovery until late next year or early 2012. “In most markets, the tide seems to be going back out,” said Stan Humphries, chief economist at Zillow.com, a real-estate site. “The momentum is easing.”

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Posted in * Economics, Politics, Economy, Housing/Real Estate Market