Necessary conditions for housing recovery now in place
Abstract:
The three market changes that are necessary for the housing collapse to end and a susrtainable recovery to begin are now happening quickly. Banks and other lenders are now substantially re-capitalized, the surplus inventory of homes for sales is being sharply reduced and home prices are falling rapidly in the most depressed housing markets. Each of these three processes is sufficiently complete for housing starts to stabilize or at least only decline marginally in the next few months.
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Comments
04/07/2008 - posted by Steve Ritchie
Interesting post, Jim. Do you think Florida will see a meaningful turnaround in 2008, or will it take a longer time to bounce back?
04/11/2008 - posted by malton44
Mr. Haughey has overlooked the fourth condition necessary for a housing recovery: consumer demand. If homeowners can’t sell their current house for a reasonable amount, they are unlikely to be in the market for a new one. If they’ve lost their job or are afraid of losing their job, they are unlikely to be looking for a new house. The housing supply and credit conditions are almost irrelevant until more people have some confidence in the future.
