Economist Mark Zandi of Moody' Economy.com is predicting a stabilization of home prices by the end of this year. I wouldn't make much of such guesswork usually, but Zandi has been a housing doom and gloomer:

Join Chief Economist Mark Zandi and Director of Housing Economics Celia Chen for an introduction to Housing in Crisis: When Will Metro Markets Recover?, a new study that offers a comprehensive look at the near-term prospects for a recovery in housing markets in a recessionary environment.

The current state of price and inventory imbalances in the housing market will be evaluated, as well as conditions in the mortgage market. The outlook for foreclosures, a key force in the housing downturn, will be discussed. The most recent Moody's Economy.com metro area price forecasts will also be presented.

Key findings:

· House prices will stabilize by the end of this year.
· The national Case-Shiller house price index will decline by another 12% from the third quarter of last year for a total peak-to-trough decline of 30%.
· By the end of this unprecedented downturn, house prices will have declined by double digits peak to trough in nearly 62% of the nation’s 381 metro areas. In about 10% of metro areas, price declines will exceed 30%.