Rebound on hold

Housing slump from 2008

Easy credit, lax oversight, tech Bubble Billions, Government policies dictating unqualified home ownership and a demographic peak in Baby Boomers needing homes are all factors in the parabolic housing Boom and Bust.

With the weak income recovery and tighter lending policies resulting from the 2008 recession, home ownership remains moribund while rental units and multi-family housing surges (typical of a weak economy and an aging demographic).

Housing is appreciating again in coastal areas where tight lending policies are keeping construction supply well below demand.  Lending has improved but qualifications are still difficult and speculation is mostly absent which has favored renting vs owning.

Confidence measures also remain at levels that are typical of a recession

Overall consumer sentiment has improved and there is a palpable optimism for future economic and income growth.  Yet consumers remain no more positive than they were in 2012 and 2013 and sentiment is still at levels that marked the “bottom” of the tech bust recession lows in 2001-2002.

Housing needs sentiment levels> 90 (Michigan Sentiment Survey).

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