NAHB Chief Economist David Crowe at the NAHB Construction Forecast Conference. Photo: Morris Semiatin

Housing, Economic Growth Now Heading to Higher Ground

The nation’s housing industry and the economy have just about seen the worst of the painful downturn that greatly intensified since last September’s turmoil in the financial markets, according to economists speaking on April 23 at NAHB’s Construction Forecast Conference.

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, they said. ...

Housing Guru at Long Last Finds Grounds for Optimism

In a departure from his previous presentations at NAHB forecast conferences, Mark Zandi, chief economist at Moody's Economy.com, was “optimistic” at last week’s 2009 Spring Construction Forecast Conference.

The bottom of the housing recession is coming into view, he said, adding that there are several reasons for his optimism. Inventories have peaked and will begin to drop, housing affordability has improved because the price-income ratio has dropped dramatically, and mortgage interest rates are at record lows. ...