No major changes have been reported in a housing market that continues to decline under the weight of an economic recession and declines in consumer confidence. Among the statistics and forecasts released by government agencies, research firms and industry-related trade associations in recent weeks were the following:

Housing Starts

Builders continued to reduce the pace of new-home construction in March amidst ongoing erosion in the overall economy and credit markets. Housing starts rose unexpectedly in April, a sign of optimism for the sluggish housing sector. [However] “builders are dramatically limiting starts of new homes in an environment of weak sales and heavy supply, ratcheting down production of single-family units to its slowest pace in 17 years,” reported Sandy Dunn, president of the National Association of Home Builders (NAHB). “Builders continue to report prospective buyers visit their model homes, but most are unwilling or unable to purchase given the downward trends in employment and home values, as well as the tightening of mortgage credit conditions,” said NAHB Chief Economist David Seiders (see related story, at right).

Exisitng-Home Sales

Little change is expected in existing-home sales over the next several months, before notable improvements take hold during the second half of the year, according to the latest forecast by the National Association of Realtors. Lawrence Yun, chief economist for the Washington, DC-based NAR, said the housing market “will come into focus” this summer. “Existing home sales could start to show a sustained increase within a few months,” Yun observed. “We’re looking for stable sales in the near term, before higher mortgage loan limits translate into sales in high-cost markets,” he said, adding the economy won’t grow in the first half, although “the combination of recent fiscal stimulus enactment and the lagged impact of monetary policy will help jump start the economy in the second half.”

Casy Polymer Demand