Market Commentary
Housing Recovery Slowed by Economy. Recovery in our nation’s housing sector has taken a step backward. Most economic and housing measures and indicators suggest continued weakness in the housing markets during the first half of this year. We believe the Case Shiller twenty city home price index will drop another 8 to 12 percent before home prices begin to stabilize. Inventories remain excessive and residential construction activity is at a standstill.
Market Insight
Bank Problems and the Housing Sector. The U.S. banking system is ailing and further deterioration could have serious negative implications for the economy and housing sector. First, it is now clear that large banks are too big to fail and that creates perverse incentives. Second, taxpayers via government injections are paying for the bailout of banks and that brings up fairness issues. Third, [Read more...]
