Economists Forecast End of Housing Correction
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Economists Forecast End of Housing Correction
- A combination of high home prices, excess inventory and the tightening of monetary policy and has led to a steady decline in U.S. housing starts.
- The outlook for single family construction should improve by Q3 of 2007, but depends largely on the sale of existing home inventory.
- Because home affordability has de-creased in the last several years, the rental component of multi-family construction looks to be strong in the first half of 2007.
- The analysts’ consensus forecasts total U.S. housing starts at just over 1.6 million for 2007.
2006 December