Economists project home sales rising modestly in 2010; worst of price declines over

Homebuilding forecast: Modest growth in 2010

LAS VEGAS — Housing experts say the market recovery should continue this year as the economy improves, but high unemployment at least through 2011 will slow the turnaround.

A panel of economists delivered their forecast Tuesday at the International Builders’ Show in Las Vegas.

National Association of Home Builders Chief Economist David Crowe says he expects home sales will weaken some after a homebuyer tax credit expires in April, but ultimately be up modestly for the year.

He also forecasts unemployment to peak at 10.2 percent before falling to around 8 percent by the end of 2011.

Freddie Mac Chief Economist Frank Nothaft expects home prices to decline 3 percent this year. His forecast calls for mortgage rates to remain below 6 percent this year.