Thursday, February 8, 2007

Economists predicting recovery later this year

Your guides are more optimistic about the Chicago Real Estate Market than the economists discussing the national real estate outlook quoted below.

In Chicago, we've seen the market absorb leftover un-sold inventory from 2006 rapidly during the last few weeks.

From the Chicago Tribune on Feb. 8, 2007:

ORLANDO -- As it struggles to absorb a glut of unsold homes, the housing industry can expect a recovery to emerge but not until later this year, three leading economists said Wednesday.

Meanwhile, the road ahead may remain rocky.

"We have to run through those inventories [of unsold homes] to get price stabilization," said David Berson, vice president and chief economist for lender Fannie Mae, at the annual convention of home builders here.

"We have to get rid of these inventories. We need a period where sales run ahead of starts." And the industry will not quickly recover to levels of two years ago, he added.

"Overall, I expect another big drop in sales this year of about 7 percent," said Berson.