Standard & Poor’s Case-Shiller Index showed slowing declines in home prices earlier in the year, and Zillow‘s survey of economists are expecting an 0.4% decline through this year, but JPChase analysts say the 4.8 million homes in the shadow inventory will drag prices down another two percent this year as more enter the foreclosure market and are sold. But next year begins an optimistic recovery that will lead to a home price rebound of 12% over the next four years. As HousingWire tells MHProNews.com, Chase says over 2.5 million problem loans will be resolved this year, which will reduce the number in the shadow inventory. The analysts report adds, “Given the large supply and volume of continuing delinquencies, we expect it will take years to work through all the defaults, but significant progress is being made, which gives us reason to be more bullish on housing than we have been for years.”
