to CNN Money, two main bellwethers for housing’s future — the supply
and demand equation and affordability — are both pointing towards a
recovery, and home sales are expected to pick up late this year or
in early 2010. The Congressional Budget Office said that new households
can absorb around 1.5 million new houses, condos and rental units a
year, and since the number of new homes and apartments now isn’t large
enough to accommodate the immigrants and young workers entering the
labor force, residents are buying and renting the existing units.
That’s driven the excess inventory down to less than 900,000 units. At
the present slow pace of homebuilding, the glut will disappear by the
end of 2009.
Home sales to pick up by 2010