Tags: housing | recovery | jobs

Experts: Housing in Serious Trouble Still

Friday, 27 Aug 2010 10:26 AM

Continued weakness in the housing and jobs markets will prevent the economy from rebounding in any meaningful way, experts agree.

“The housing problem is a problem for the broader economy, and until that comes back, we won’t have a robust recovery,” Nicolas Retsinas, director emeritus of Harvard University’s Joint Center for Housing Studies, told Bloomberg.

“Jobs are going to be the key factor in the recovery, and we have a job market that’s sluggish.”

The numbers tell an ugly story. On the jobs front, unemployment stands at 9.5 percent. As for housing, existing home sales plunged 27 percent in July from June to at least an 11-year low.
And new home sales dropped 12 percent in July to at least a 47-year low.

Jobs and housing are closely linked, because without an improvement in the labor market, it will be very difficult for housing to rebound.

“There’s a mindset of fear of losing employment,” Pat Lashinsky, CEO of ZipRealty, told Bloomberg. “(Housing) is not in a very good position right now.”

Foreclosures also are weighing on housing.

“We need resale inventory, namely foreclosure inventory, to come down before we’re going to see any meaningful move in the housing market,” Richard Dugas, CEO of homebuilder Pulte Group, told Bloomberg.

Mark Zandi, chief economist for Moody’s Analytics, sees the housing sector entering a double dip.

“We probably, almost assuredly, will experience more house price declines,” he told CNBC.

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Continued weakness in the housing and jobs markets will prevent the economy from rebounding in any meaningful way, experts agree. The housing problem is a problem for the broader economy, and until that comes back, we won t have a robust recovery, Nicolas Retsinas,...
housing,recovery,jobs
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2010-26-27
Friday, 27 Aug 2010 10:26 AM
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