Grim but obvious study out from UCLA. And again, people can stick their head in the sand, deny we were in a bubble, and keep buying up homes, but they'll only have themselves to blame. It's over folks.
The U.S. housing market will see a sustained decline next year, causing a drag on the nation's economy but falling short of triggering a recession, according to a new economic report.
"We expect housing to start slowing the economy this quarter or the next," Edward Leamer, director of the quarterly University of California, Los Angeles, Anderson Forecast, wrote in the report to be released later Wednesday.
The cooldown in the housing sector is likely to be spread over several years, with as many 500,000 construction jobs and 300,000 financial sector jobs lost, the report said.
"Some jobs in manufacturing might well disappear as a result of weakness in housing, but this may be offset by jobs brought home or not lost to foreign competition," Leamer wrote.
The forecast said eight of the last 10 economic recessions were started by housing market slowdowns.
December 07, 2005
FLASH: U.S. Housing Market Seen Declining in 2006
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3 comments:
So here we go. Even Beverly Hills received a Bubble Burst in 1990.
I am waiting to buy in Los Angeles. Patient money is safe money.
"The forecast said eight of the last 10 economic recessions were started by housing market slowdowns."
wait wait wait!
but it could be awhile
Haven't they forecasted a downtrend for the past 5 years?
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