Defpoints


Home construction to continue decline
July 7, 2008, 6:37 pm
Filed under: Architecture, Economy, Politics

From SF Federal Reserve Bank President Janet Yellin:

. . . Inventories of unsold homes remain at elevated levels . This “excess supply” of available homes will put downward pressure on housing prices. Indeed, these inventories are likely to directly depress construction activity, since there is little point in building new homes when there is already a large backlog of unsold homes. . . . The bottom line is that construction spending and house prices seem likely to continue to fall well into 2009.

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