Expert Predicts Housing Market Bottom Next Year

A story from cbs4denver.com, reports that John Covert of Greenwood Village-based Metrostudy said of Denver area housing, "The best way to look at this is that we know we're going to come out of this eventually."  When it comes to the housing market, the Denver metro area is as diverse as any in the country.  Some areas are caught in the foreclosure crisis, while others with high-priced homes and neighborhoods are experiencing rising home prices and sales.  According to Covert, builders are a good gauge on what's ahead.  Currently, housing starts are way off the pace of the past few years, but they may drop to their lowest point this year.  He said, "Basically they're not starting a house unless it's sold.  The problem is that there's so much resale inventory in the market right now that people can't sell their house to buy a new house.  So builders are left with a lot of canceled contracts and trying to manage that whole scenario as well."  Later this year, Covert believes data will show builders it's time to start building again.  He added, "We'll get to a point where we'll just have to build more homes, especially if we're creating the same number of jobs and the same number of people outside the market into Denver."
http://cbs4denver.com/business/denver.housing.market.2.713092.html

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