The price report was about as expected and does not alter the Reed Construction Data forecast for housing starts to reach about 800,000 by the end of 2010.

This dual housing market will persist well into next year. The housing recession will worsen further in the four states and isolated urban areas elsewhere with the highest incidence of subprime, jumbo and speculative home purchases in 2004-06. Continued rises in foreclosure and distress sales will prevent a quick drop in the homes for sale inventory. At the same time, most other housing markets will progressively improve spurred by a falling surplus of available homes for sale, near record high home affordability and federal programs to subsidize down-payments and cut monthly mortgage payments.

The national sum of improving and declining local markets will show slow but progressive improvement.

Ahead, the FHFA price index will edge up gradually through next year at a 4-6% annual rate while the S&P/Case- Shiller index is expected to bed up marginally, if any at all, into the winter.

» View all comments (0 total comments)

Post Your Own Comments 

» Not a member? Register now to become one. Otherwise, login to post your comments on this article.

11/20 - Let’s stop counting stimulus jobs

11/19 - New municipal bond program boosts public construction

11/18 - October housing starts plunge as tax credit expires

11/18 - Exports will sustain US recovery but export mix will change

11/17 - Washington eyes takeover of commercial construction and real estate lending

» Back to Jim's Blog