Journal Article

When will the U.S. housing market stabilize?


Abstract: The hope that housing markets had stabilized in mid-2010 was dashed by subsequent declines in home construction and prices (Charts 1 and 2). Homebuilding peaked about five years ago, and housing prices almost four years ago. Amid such a prolonged downturn, a key question becomes, When will the housing market stabilize and support the economic recovery? We suggest that new home construction may stabilize and start recovering slowly within the next year or so. Our econometric results also indicate that national house prices may hit bottom late this year or in early 2012 and then recover slowly.

Keywords: Housing - Prices; Mortgage loans;

Access Documents

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Economic Letter

Publication Date: 2011

Volume: 6

Order Number: 8