Just today I have spoken to three people who have lost their jobs, and things don’t seem to be getting much better. A new study released by the National Association for Business Economics says that the economy will get worse further into 2009. They expect a rebound to begin in 2010. Unemployment anticipation for 2009 rises about 2 point to top out at 9%, certainly a notably recession by historic standards, but about half as much as the great depression. A summary of the NABE survey can be found here.
NABE expects a 5% decline in housing prices during 2009. Here is the interesting part. They expect to see home sales and construction make a low point mid year, which could certainly assist the overall economy. They clarify though that prices may continue to fall thereafter.
