Economists at Moody's Analytics expect a pickup in home sales and construction in 2011, but admit they are "nervous" about their price forecast because of the high level of seriously delinquent loans, distressed sales, and strategic defaults.

Moody's Analytics chief economist Mark Zandi is forecasting the Standard & Poor's Case-Shiller house price index (HPI) will decline another 5% from the third quarter of 2010 to the third quarter of 2011 when prices will bottom out.  

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