MIT Prof Says Housing Demand Is about to Take Off
At least some analysts are bullish on housing.
William C. Wheaton, professor of economics at Massachusetts Institute of Technology, argues that the housing market is due for improvement, calling home construction, "a sleeping giant that is about to wake up."
Wheaton believes that because there has been so little construction that demand exceeds the level of building and it will soon absorb excess inventory.
"Housing construction will not only rise, but it will stay high for a while, which didn't happen in previous recoveries," Wheaton predicts.
Source: Fortune, Nin-Hai Tseng (09/17/2010)
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Hickory, NC
Can't hardly cash in on that theory yet. While that may hold true for a few markets, generally speaking, we have a glut of resell houses on the market, and with the drop in prices, those houses are significantly cheaper to buy than to build a similarly constructed new home. In many cases, this holds true even if the resell house needs some major remodeling done to "bring it up" to today's specs. Just my thoughts.
Sep 25, 2010 01:09 PM
West Group Real Estate - Victor, ID
Harley Wilcox
Every market is different. I am finding that although there are still a few good deals here where properties can be purchased below replacement costs, some discriminating buyers are looking at lots and talking to architects about building. In Jackson Wy as well as here in Teton valley Idaho we are seeing new home starts. I have seen building projects started that have been on hold these last few years. I am perhaps an optimist to a fault.
Sep 25, 2010 01:32 PM
Top Agents Atlanta Metro - Roswell, GA
Top Agents Atlanta Metro, Inc.
Hopefully there are more than the 3.3 Million homeowners who are ready to lose their homes from foreclosure that are willing to buy, it is going to take a real surge in home buying to turn this thing around as we go into the winter months. Thanks for the good information.
Sep 25, 2010 01:46 PM
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