It’s difficult for housing experts to determine whether the market has finally bottomed out, especially since home sales typically slow during the winter months. Moreover, Census data shows that 4.6 percent of the nation’s for-sale and rental homes, or 5.7 million units, sat vacant in the third quarter — up from an average 3.5 percent during the last decade. More than 1 million of these units need occupants if the ratio is to return to normalcy, yet a Blue Chip Economic Indicators survey of economists found that most anticipate 1.6 million housing starts in 2007.
The housing slump has not yet had an impact on the national economy, and homebuilders do not expect to know whether the downturn has ended until the spring homebuying season commences.
Source: Wall Street Journal (01/08/07) P. C1; Lahart, Justin
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