Housing Recovery Dependent on Inventory Reduction

We came across this article in RISMedia and wanted to share it with you.  It gives a good glimpse of what is going on in the marketplace and some of the challenges we may face ahead.

Housing is stabilizing but excess inventory and shadow supply are hindering recovery according to the April 2010 Economic Outlook released by Fannie Mae’s Economics & Mortgage Market Analysis Group. The outlook projects economic growth of 3.1{b0691beea1c2f39bd1c58efe4ba0816740a602e2685bc83cc0a70ecfa3fcdf10} for all of 2010, notwithstanding the recent dip in growth for the first quarter.

“Financial conditions are improving as seen by the unwinding of various programs, most notably the MBS purchase program which ended in March. This is strong evidence that the Fed believes the financial sector can stand on its own,” said Fannie Mae Chief Economist Doug Duncan. “We estimate that June 2009 was the end of the recession, a good sign that we’re moving forward. Nevertheless, significant improvements in the labor market and consumer spending will be the big hurdles as we move toward recovery in the housing market and broader economy.”

To view the entire article, click here.

By |2018-11-15T12:43:07-07:00April 22, 2010|

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