Housing Recession Nearing An End, Say Home Builders
The National Association of Home Builders has a new online article Housing, Economic Growth Now Heading to Higher Ground.
Really?
According to the NAHB’s chief economist, David Crowe, “the housing recession is nearing an end and housing will return on a very slow basis.”
This is interesting. Are we having a housing recession? Certainly not in California, Arizona, Nevada, Florida, Michigan or any number of other markets. If the national housing market can be characterized as being in a “recession” then what could you possibly call the situation in major foreclosure areas except housing depressions?
When is the “end” that we are nearing? In a month? This year? 2029? How many months in a “nearing”?
“And despite a continuation of rising unemployment well into next year, although at a slowing pace, housing in this year’s second half is expected to begin gradually leading the economy to higher ground,” says the article in describing several economic forecasts.
But if unemployment is rising doesn’t that put a damper on home sales? How do growing numbers of people without jobs buy houses? Or food?
The article says that housing statistics are inaccurate because “45% of existing home sales currently are foreclosures that are not typical of the existing housing stock.”
Are buyers to ignore foreclosed homes when making an offer and bid more? Does this make sense to anyone?
What’s typical of the existing housing stock is not the issue, what’s typical of the homes for sale is important because that’s how we value homes in both good times and bad.
Oh well, Jay Leno has been out for a few days so it’s good to hear the economic thinking of the home builders.
For the full story, see: Housing, Economic Growth Now Heading to Higher Ground.
© Copyright 