Majority of economists think housing crunch isn’t over yet
 

NEW YORK – Feb. 6, 2007 – Economists are undecided as to whether housing is on the verge of rebounding or whether the situation will worsen, according to a recent poll of 55 analysts by USA Today. The survey reveals that 9 percent of economists believe the housing slump ended last year, 42 percent believe it will bottom out sometime in the first six months of the year, and 45 percent predict it will end in the second half of 2007.

Recent reports, such as the National Association of Realtors®’ data on pending home sales and unsold properties on the market, suggest that housing may be getting better; but economist Tucker Hart Adams believes foreclosures and unsold homes will continue to rise as adjustable-rate mortgages reset and as payments on nontraditional mortgages and other debt become too much to handle for homeowners.

“It’s really optimistic to think that it just took a little adjustment and everything is fine,” Hart says.
 

Source: USA Today (02/05/07) P. 1B; Hagenbaugh, Barbara

© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688