For Home Builders, Tough Times Still Ahead
According to a number of economists at the National Association of Home Builders future outlook conference, an already faltering real-estate and construction market should expect more setbacks. Citing the recent sting of home financing and financial crisis, the panel’s consensus was that tough times were still ahead, however, the severity of the forecasted events and their possible effects on the economy overall was disputed by the panel.
On the Wednesday October 24, 2007, the same date home builder’s panel occurred, the National Association of Realtors issued the report stating the sale of homes slowed to the slowest rate since 1998. The effects of this lack of demand for building coupled with the slowed sales of existing homes has definitely been a blow to the real-estate market, however, economists are still split over the overall effect the crisis will have on the economy as a whole. The current credit crisis and backlash from lax lending rules previously have been replaced by more stringent lending offerings, but some are not sure if this will be enough. "This time, we just don't know how it's going to pan out because the securities markets have become so much more important," said David Seiders, chief economist with the builder's trade group.
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