What’s the outlook for housing prices in 2011. Well--- It depends who you ask. According the a recent report, housing prices dropped in November 2010 by over 5%. Patrick Newport, economist at IHS Global Insight, predicts national home prices will fall 5% to 7% more this year before potentially rebounding later in the year.

Zillow.com, a real estate valuation website, also sees housing prices continuing to fall until late 2011.

However, the National Association of Realtors (NAR) latest economic forecast has housing prices rising as early as the 1st quarter of 2011 and continuing the trend throughout the year.
One thing’s for sure. There’s rarely been a better time to buy a home. Freddie Mac says the average rate on 30-year mortgages dropped to 4.77% from 4.86% the previous week. It hit a 40-year low of 4.17% in November. While rates are likely to rise in 2011, home buyers typically get off the fence in a market with rising interest rates. There should be plenty of pent up demand in 2011 as many buyers have taken a wait and see attitude for the past couple of years.

It’s still going to be a while before housing prices get back to their 2006 highs, but I’m betting things will be better for the real estate market in 2011 and continue to improve as we head in 2012. Let’s hope so anyway!