Home foreclosures to climb in 2011, discouraging new construction

While housing remains a weak link of the economy, sales of existing homes have begun recovering from the July 2010 slump that pushed them to the weakest rate in a decade’s worth of record keeping, according to a Jan. 16 Bloomberg report.

Foreclosures might weigh on the inventory of unsold homes, discouraging construction and hurting prices. The number of homes receiving a foreclosure filing will climb about 20 percent in 2011, reaching a peak for the housing crisis, as unemployment remains high and banks resume seizures, RealtyTrac Inc. said this month, according to the Bloomberg report.

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