More analysts are coming to the conclusion that any apparent bottom in the housing market is false, and that any rally is a head fake.
Bloomberg: “The risk of renewed home price declines remains significant,” Alec Phillips, head of Goldman’s Washington office, said in an Oct. 23 note to clients. “Our working assumption is a further 5 per cent to 10 per cent decline by mid- 2010.”
“We should expect subdued home price appreciation over the next few years,” wrote Merrill Lynch’s Ethan Harris and Drew Matus on the same day.
“While tax credits and distressed property sales may be influencing both sales activity and prices, they are not the primary force behind the rebound in housing,” Merrill Lynch’s Harris, head of North American economics, and Matus, a senior economist, wrote in a Halloween-themed report that likened the improvement to a “treat.” Read the whole thing >
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