Several economists say U.S housing market finally bottoming, stabilizing
The U.S. housing market is showing more signs of stabilization as price declines ease and home demand improves, spurring several economists to call a bottom to the worst real estate collapse since the 1930s, Bloomberg.com reported today. “The crash is over,” Mark Zandi, chief economist for Moody’s Analytics Inc., said. “Home sales – both new and existing – and housing starts are now off the bottom.” Data showing better-than-estimated new-home sales and a slowdown in price declines are bolstering optimism that the market is poised for a sustainable recovery.
Economists including Bank of Tokyo-Mitsubishi UFJ’s Chris Rupkey, Bank of America Corp.’s Michelle Meyer and Mark Fleming of CoreLogic Inc. are also predicting prices are close to a trough after a 35 percent slump from a July 2006 peak, even as the threat of more foreclosures loom to boost supply.