US Housing Market, Miami Beach Real Estate

US Housing Slump, Close to a Recession?

An academic study showed Monday, the bottom to the housing slump is nowhere in sight and, if history is any guide, a recession is mostly likely lurking around the corner.

The study done by Harvard University's Joint Center for Housing Studies painted a dreary picture of the current housing downturn, labeling it as possibly being "the worst in a generation" in its "The State of the Nation's Housing 2008" report.

Existing home sales are at all-time lows since after World War II, while home price declines and mortgage defaults are the worst on record, the study noted.

"We've never has so much information or data in uncharted water," said Eric Belsky, the Joint Center's executive director. "A recovery is not anywhere near in sight."

Six of the last seven housing downturns were followed by a recession he noted, usually within two years. However, Housing starts typically rebounded strongly after inventory fell and new home sales picked up, after the recession ended.

The report’s authors did not give a time frame for a housing turnaround, but expect immigration growth to be a key factor in rejuvenating the market.