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NAHB Forecast Indicates Continued Recovery of Housing Production
Michael Neal / NHAB / October 3, 2013
Today, NAHB hosted its Fall Construction Forecast Webinar (CFW) featuring three renowned industry experts. NAHB Chief Economist David Crowe was joined by Mark Zandi, Chief Economist at Moody’s Analytics, and NAHB Senior Economist Robert Denk to present views on the outlook for the US economy and the housing market more specifically.
Here are the major points from today’s presentation:
David Crowe, Chief Economist at NAHB, noted that economic growth is expected to accelerate over the coming years and recent growth has reflected improvement in the housing market. At the same time, employment is rising. Although mortgage rates have risen in recent months they remain below historic levels. In addition, he noted that both household balance sheets and overall consumer confidence have improved. Consequently, consumers have increased their purchases of durable goods such as cars and furniture, and have indicated a willingness to purchase a new home. The housing recovery is also supported by rising household formations and rising population in prime household formation years. However, the optimism for a continued recovery in housing may be siphoned by tight mortgage credit conditions, high labor costs faced by builders, a shortage of lots, elevated materials costs, and lower appraisals.