Housing Recovery Delayed Until Mid-2010, Says Portland Cement Association (PCA)
According to a recent economic research report from the Portland Cement Association (PCA), Skokie, Ill., the conditions needed for a recovery in housing starts activity to begin will not be in place until mid-2010. Although resets of traditional sub-prime mortgages are expected to reach an apex in mid-2009, exotic mortgages such as Alt-A and option adjustable, will experience a dramatic increase in resets mid-2009 through mid-2010, according to the report. This second wave of toxic resets, says Edward J. Sullivan, PCA chief economist, will accelerate foreclosure rates and add to the large number of foreclosed homes in a crowded market.
“Housing construction activity cannot begin until sales recover,” says Sullivan. “Increased foreclosures, coupled with deteriorating labor markets and tight credit conditions, will delay significant sales activity until mid-2010. Improvements in housing starts are not expected to be significant until 2011.”
Although the housing recovery bill, along with bank efforts to rewrite toxic mortgages will mitigate the magnitude of potential defaults and foreclosures during the next 18 months, PCA expects a weak labor market and declining home prices will increase the number of foreclosed properties being added to the housing market inventory.
“Without further government cash injections into the banking system, tight lending standards could characterize the economy and mortgage lending through mid-2011 dragging down home sales,” Sullivan says. “Under such a scenario, the housing recovery and overall economic recovery could be delayed significantly.”
Want to use this article? Click here for options!
© 2012 Penton Business Media, Inc.
Latest Articles
CFL/LED dimmer
May 24, 2012 8:48 AM
Load bank
May 23, 2012 9:33 AM
LED replacement lamp
May 22, 2012 8:12 AM
Trending Articles
Acceptable Use Policy blog comments powered by Disqus
advertisement
what's wrong here?
What's Wrong Here?
May 10, 2012 12:44 PM
View all What's Wrong Here?
What's Wrong Here
Sponsored By:
product spotlight
CFL/LED dimmer
May 24, 2012 8:48 AM
The Harmony CFL/LED dimmer is designed to operate with single-pole and 3-way circuits...
View all 2012 Product Spotlights
Free Product Info
Our Product Information site is the ultimate online resource for products and services offered by Advertisers featured in our Magazine. This service is provided as a quick and easy way to request Product Information online. Get FREE product information now.



































