I just report the news, I don’t make it!
The worst of the housing bust is over, economists said by nearly 2-to-1 in the latest WSJ.com [Wall Street Journal] economic forecasting survey. But they still predict that the average selling price of a house will fall next year.
“We’re nearing the end of the slowdown for most markets,” said Ethan S. Harris at Lehman Brothers. Prices still have some ways to fall before they’ll stabilize, but there are signs that most drastic parts of the downturn – marked by a sharp pullback in demand and new construction – have run their course.
Quoted for the story is Allan Sinai, now of Decision Economics Inc., but previously of The Boston Company, here in town. His opinion, I trust.
The housing slowdown is expected to hit consumer spending, but the “consumer won’t cave in and drive us into a recession,” said Mr. Sinai. Steady interest rates, controlled inflation, stabilizing energy prices and a solid jobs market will support the economy, he said.
That’s good, not just for sellers, and their real estate agents, but for the U.S. economy, as a whole.
Also, only 8 of 56 economists polled believe the Fed will raise the Fed rate above 5.25% anytime between now and June, 2007.
Complete story: Economists Say the Worst Of Housing Bust Is Over – The Real Estate Journal