Housing Market Revival Predicted for 2008

Remember what I always say, "Reasonable real estate is always a good investment!" The recent volatility of the market is a direct result of UNreasonable practices on both the selling and buying side and will, as usual, correct itself. The trick is not to get caught up in the craziness.

"Though there appears to be no let-up to the current housing downswing, economists participating in the National Association of Home Builders Fall Construction Forecast Conference 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 in the subprime and Alt-A mortgage markets, NAHB Chief Economist David Seiders said that housing should nevertheless begin a modest recovery next year.

Despite the present market contraction, Seiders said that housing should begin to turn around next year for a number of reasons: the overall economy and job growth continue to move ahead at a decent pace, core inflation is under control, the late-summer credit crunch in mortgage markets is showing signs of easing since the Federal Reserve cut short-term interest rates on September 18, and the supply-demand equation will be better balanced as builders begin to whittle down excess inventories."

For the full story from the National Association of Home Builders: http://www.nahb.org/news_details.aspx?sectionID=148&newsID=5568