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Fannie Mae says housing market outlook has not improved

Dennis Norman St LouisFannie Mae released their April 2011 Economic Outlook which, as far as the housing market goes, doesn’t paint a real rosy picture. The Fannie Mae report cites weak home sales in the first part of 2011, distressed sales making up more than a third of those sales and the winding down of various programs that were supporting the housing market as the cause of continued home price decline.

“Home price expectations have deteriorated during the past several months, which could cause some potential homebuyers to remain on the sidelines — and further sharp cutbacks in housing demand would pose a risk to the fragile housing recovery,” said Fannie Mae Chief Economist Doug Duncan. “We expect a little more decline in house prices at the national level than we had thought previously, but expect prices to begin stabilizing later this year.”

If you would like to hear a complete podcast on the report by Doug Duncan, Vice President and Chief Economist at Fannie Mae click here.