Industry News

Worst-case scenario for housing next year

Part 3: 2005 Real Estate Forecast

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Editor's note: The real estate industry is heading for big change in 2005. Experts once again are predicting slower home sales and easing price appreciation due to an anticipated rise in interest rates. In this Inman News forecast series, we attempt to get a clear picture of the industry next year, including what we can expect from housing numbers, who the industry should be watching and what the best and worst-case scenarios might be for housing in 2005. (See Part 1: The interest rate roller coaster ride; Part 2: Best-case scenario for housing next year; Part 4: What will happen in 2005? Part 5: 15 people to watch in 2005; and Part 6: Inman News Readers 2005 Real Estate Forecast.) Real estate's worst nightmare for 2005: The country would slip into a recession and the number of home loan defaults would spike, putting downward pressure on home prices overall. The U.S. also would over-commit itself abroad, leading to foreign investors no longer viewing the country as a safe place to buy...