On the one hand.
Mr Harris predicts three sets of data this week will provide evidence of market stabilisation, with existing home sales rising for the first time in eight months, new home sales falling by less than 2 per cent, and house prices rising by a modest annualised rate of 2 per cent in the third quarter.
But on the other hand.
David Rosenberg, chiefUS economist at Merrill Lynch, says: “I think the latest barrage of data told you that housing hasn’t bottomed. We’re not going to hit bottom for the entire sector until the tail-end of 2007.”
Yeah, I can go along with 2008 for a homebuilder rebound.
Don Tomnitz, chief executive of DR Horton, one of the largest builders, talks of a “bad psychology” in the market as buyers steer clear amid fears that prices will plummet further. But he argues this phenomenon is creating “pent-up” demand that will be released and result in a strong rebound in 2008.
But from the new home buyer’s point of view, how long will the huge new home incentives last… or are they already gone.