Thursday, January 12, 2012

2012 Housing Market Poised to Be Anemic

By Mark J. Donovan

The latest new home construction forecasts coming out for 2012 suggest that it won’t be much better than 2011, even with 30 year fixed mortgages sub 4%. With unemployment still at very high levels, wages stagnant for those who are working, and banks still tight in lending money, it’s understandable that the future home construction market looks flat. One report suggested one of the few bright spots will be the New York City area. Not surprising, since that’s where much of the country’s wealth resides.

The only positive news out of the forecasts is the fact that there is some stabilization in the housing market. Also, every politician running for president understands that the housing market is key for lifting the U.S. economy out of its funk. Hopefully the American public will figure out who’s the best man for the job in actually coming up with a real plan to fix the problem. Certainly the one in office has no clue. So for now, the residential building industry just needs to continue to wait it out and hope for some real change in November.

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