Job losses, falling prices keeping stunting demand
(Source: Inman News)
Conditions that could support a housing recovery are taking shape now, but job losses, falling home prices and tight lending standards mean demand for housing remains “remarkably low,” according to a new Harvard University report out today.
Home-price declines and low interest rates have restored housing affordability in many markets, and a dramatic reduction in home construction should eventually improve the balance between housing supply and demand, the 2009 State of the Nation’s Housing Report from the Joint Center for Housing Studies of Harvard University concludes.
Sales of distressed properties, temporary first-time buyer tax credits, and low interest rates have helped stabilize sales. But as homes continue to enter the foreclosure process in record numbers, the number of vacant housing units for rent, sale or being held off the market is at record highs, putting pressure on prices.
Read the full article “Report: Stage is set for recovery” in the Inman News (June 22, 2009).