Wednesday, February 16, 2011

The housing correction has run its course


The housing correction started about 5 years ago, and that sounds like enough time for a correction to take place. After falling by an astounding 75%, housing starts have held at very low levels for the past two years. Although there is no sign yet of an upturn—the fact that January starts were up 15% from December, and much higher than expected, could well be due to seasonal noise—I have to believe that the decline in residential construction has run its course. Now it's just a waiting game to see when activity starts to improve, and I would think that should happen before the year is out.

9 comments:

  1. who cares. it won't ever be a source of wealth or improvements in employment of significane or personal income. it is a dead and destroyed corner of the economy with respect to wealth creation/savings directly attibutable to the recklessness of the fed.

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  2. Septi: I thought I told you that never is a very long time.

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  3. I believe in Bible. The story of 7 fat cows and 7 thin cows. If we count it from 2007, then the day for recovery will be in 2014.

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  4. bill: stop blowing wind and go read the paradox of schrodinger's cat.

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  5. This comment has been removed by the author.

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  6. Septi: Interesting story about a cat but, as with your posts, it has the appearance of sophistication but is ultimately nonsense.

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  7. bill: your hubris is only exceeded by your obtuseness.

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  8. Is this why the Case-Shiller Index is still falling????


    With as much money has the Fed has printed, there is still too little money chasing too many houses.

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  9. gaguy: you overlook the fact that the Fed has NOT printed money. Money supply measures show no evidence of money printing.

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