There’s no denying 2008 was not a great year for the economy. With the credit crisis, skyrocketing foreclosure rates, and an increase in job losses it was a tough year for many of us. But will 2009 get better? It depends on which economist you ask.

2009 Will Be Worse

According to reports, Credit Suisse is forecasting that 8 million more homes will go into foreclosure over the next four years. That equals about 16% of all US households currently holding mortgages.
The company predicts a deepening recession in 2009 as well as increased job losses. According to HousingPredictor.com, housing prices nationwide will fall 12.5%. In 2008 prices fell 11.1%. Economist Mark Zandi told USA Today, “the first six months of ‘09 will be very painful, the second six months will just be painful, and 2010 will be uncomfortable.”

2009 Will Be Better

Some are predicting that the housing market will hit bottom in 2009 and will slowly begin to recover through the second half of the year. Americans are expected to continue tightening their wallets through the beginning of the year and then slowly increase spending. On the bright side, gas prices will continue to be much lower in 2009 compared to 2008, according to The Energy Information Administration. Some economists say the US will slowly emerge from the recession around the middle of 2009.