Archive for February 28th, 2009

Path to recovery…a long road

Saturday, February 28th, 2009

Housing inventories
We would not look for house prices to stabilize until inventories reach eight months’ supply. Until that level is reached, we see price declines of 3% per quarter. What will cause inventories to fall given the underlying weakness in the economy and tight credit conditions? Simply put, demographics. We see an underlying rate of new home demand of 520,000 units per year. With housing completions likely to fall below that figure late this year, we could begin to see modest declines in housing inventories starting next year.

Households not favoring idea of taking on new credit

Saturday, February 28th, 2009
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