Economists Say Recovery May
be Slow
Daily Real Estate News | August 25, 2009
Some
economists are saying that they expect housing inventory and
demand to meet sometime in 2010, but they don’t believe that
necessarily means a rebound in the market.
"Even after we hit the low, we'll be
bouncing along that low for an extended period of time," says
David Rosenberg, chief economist at wealth management firm
Gluskin Sheff. "The bottoming-out process is [measured] in
years, not quarters."
Rosenberg thinks that the uptick in sales this summer can be
attributed – at least in part – to investors buying homes to
rent. Their purchases are driving down rents, giving potential
buyers less incentive to buy their own homes.
Also slowing the market, Rosenberg
says, are the vast numbers of baby boomers who would like to
sell and move to a smaller home that is less expensive to
maintain."They're
going to be selling into a shrinking pool of trade-up buyers,"
he says.Source:
BusinessWeek.com, Ben Steverman (08/24/2009)
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