Now No Housing Bottom Until 2010
We’ve heard estimates in the past several months that housing prices would bottom this year or in 2009, but now the chief executive of one the largest privately held home builders is predicting worse.
C.P. Morgan chief Tom Eggleston told Reuters that he doesn’t see housing bottoming until mid-2010 and believes the recovery won’t be a quick one.
Eggleston also told Reuters that he believes half of the 75,000 members of the National Association of Home Builders could be struggling to survive within three years, predicting home prices will fall another 20 percent, and land prices another 25 percent.
At the same time, he believes home price declines will be less significant in many of the areas the home builder operates, including Indiana and much of the Southeast.
“Our strategy is to enter the markets that will recover more quickly,” Eggleston said.
Everyone seems to have their own opinion, but one direct from a home builder sounds like a pretty good bet.
(photo: gypsygirl)
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