ALBANY — The downturn in the nation’s housing market, including the Albany, N.Y, region, was necessary and will be temporary for the most part, according to the chief economist for the National Association of Realtors.
David Lereah told a gathering of about 400 real estate agents at a hotel in Saratoga Springs Monday morning that the decline that started in August 2005 was needed to bring equilibrium back to a residential real estate market that had tilted too heavily toward sellers.
He predicted a rebound in the next three to six months in most parts of the country, provided the Federal Reserve doesn’t start raising interest rates again.
Lereah said conditions were ripe for a market correction in August 2005 because interest rates had gone up by a full percentage point in the previous year, speculative investors began pulling back and many first-time home buyers were priced out of the market.
“This isn’t a party with no hangover,” he said.
Source: Housing downturn only temporary, real estate agents told – By Michael DeMasi, The Business Review (Albany)