Photo by Morris Semiatin

'Modest' Housing Recovery Forecast to Begin in 2008

Though there appears to be no let-up to the current housing downswing, economists participating in the NAHB Construction Forecast Conference in Washington, D.C. on Oct. 24 said they expect the industry to bottom out and to start turning around in 2008.

Acknowledging that there is definitely downward momentum in the market at this time — with starts, sales, prices and permits off and problems persisting in the subprime and Alt-A mortgage markets — NAHB Chief Economist David Seiders said that housing should nevertheless begin a modest recovery next year. ...

Housing Slump May Rattle Some Local Economies

Focusing on the regional and metropolitan outlooks, Moody’s Economy.com Chief Economist Mark Zandi and NAHB Director of Forecasting Bernard Markstein offered NAHB's Fall Construction Forecast Conference similar views on how the housing market slowdown is shaking out across the country.

Neither economist predicted that housing’s considerable drag on growth will actually pull the national economy into recession. ...