Last December I predicted that the housing market would turn around "summer 2009." A turn around meant prices stabilizing, and construction returning to more normal levels (to the extent that government increased its construction spending, "the fiscal stimulus will add a wrinkle: more of the housing recovery may be in the form of rising prices rather than rising construction activity").
As early as this spring, we saw several housing price indicators confirming this prediction. But the other part of a genuine housing recovery is housing construction, so it was interesting to see the BEA report this morning that real residential investment in 2009 Q3 was higher than in the previous quarter -- the first quarter-to-quarter increase in almost four years.
As early as this spring, we saw several housing price indicators confirming this prediction. But the other part of a genuine housing recovery is housing construction, so it was interesting to see the BEA report this morning that real residential investment in 2009 Q3 was higher than in the previous quarter -- the first quarter-to-quarter increase in almost four years.
I believe that the residential home’s sales will also incline in the next quarter.
ReplyDeleteResidential Advice