The housing outlook remains strong and there are no signs of a housing price bubble on the horizon, according to economists for the National Association of Home Builders (NAHB) and National Association of Realtors (NAR), speaking April 5 at the National Press Club.
“All the numbers we see point to a good balance of housing supply and demand in most of the U.S.,” said David Seiders, chief economist, NAHB, Washington, D.C. “Fear of a pricing bubble would drive people back into stocks — which Wall Street would surely love — but it is just not the case.”
Seiders also noted that with the inventory of unsold new homes on the market hovering around 4.2 months, housing will not have to make a ‘payback’ for overbuilding during past recessions. “The economic and financial market environment in our forecasts should provide a solid foundation for the housing market in both 2002 and 2003,” he said. “While some fall back in housing starts seem inevitable in the second quarter of this year, following a huge first quarter, total starts are expected to hover around the 1.6 million annual rate over the balance of this forecast period.”