National Market Watch

Posted by Carol M. Flammer on May 31st, 2007

Bernard Markstein, VP of Forecasting and Analysis for the NAHB gave NAREE attendees an update on the state of the market today. He compares 2004 and 2005 to a big party with 2006 as its wake up call. Much like a bad hangover, builders are still feeling the waves of nausea that have resulted. Markstein states that the market is in the process of bringing supply and demand into balance and that it will simply take a bit more time for the market to correct. The curent 2007 outlook predicts that the new homes market is heading back to a normal slow growth market — not the previous wild party of 04 & 05.

The good news is that the national economy is in fairly good shape with real estate causing most of the slow down. Employment growth is predicted to be 1.3% this year. As the market works off the existing inventory of new homes the housing market should stabilize with improvement starting in Q4 2007 and Q1 2008.

Other continued economic concerns include affordable housing, the condo market and the subprime mortgage market — all things that savvy builders and new home buyers should watch.

Greater Atlanta Home Builders Association hosted a press conference earlier today on the state of the Atlanta housing market. I hope to post a report from this event on the blog tomorrow.

Carol Flammer is President of Flammer Relations, Inc. an Atlanta area Public Relations firm specializing in real estate, business to business and nonprofit clients.