Since I work with builders and developers regularly, the "predictions" on the housing market (for what they're worth) are always of interest. Fed Chief Bernanke is now saying that the housing slump will last longer than previously thought, but that the slump is easing. In fact, just yesterday BusinessWeek.com reported Bernanke as saying "we have not seen major spillovers from housing onto other sectors of the economy". See http://www.businessweek.com/bwdaily/dnflash/content/jun2007/db20070605_705362.htm. So even though the slump is expected to continue, the Fed Chief is taking the "no spillover" approach.
That seems to conflict with much of the news over the last couple months...but conflicts in the news are nothing new. :)
Will the housing slump continue through 2007? Will the housing slump ease in the coming months as builders slash prices and inventory is reduced (and will that make matters worse moving ahead)?
There are so many variables at play. Interest rates. Loan programs and LTV ratios offered by major investors. Inventory. Foreclosure rates. Unemployment rates. And inflation in general. It all has an effect, so for any expert to make a bankable prediction would be no less than amazing.
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