Housing Recession Nowhere Near Bottoming Out, Says Roubini

Excerpt from Prof. Nouriel Roubini's RGE Monitor: "It is is certainly the case that we are already in a severe housing recession; and this housing recession is nowhere near bottoming out: building permits - the most important leading indicator of future housing - fell another 5% last month and are already down 30%, and likely to fall even more in the coming months. In the housing sector the cycle starts with permits that lead to housing starts, to construction spending, employment in housing and sales. The continued fall in permits is the strongest signal that a 15% fall in housing starts (from trailing peak) is only the beginning of a much sharper adjustment in the housing sector. The sharp fall in new home prices - down 10% already - is the beginning of a much bigger downward adjustment in prices ahead."

Full November 3rd article here.

Comments

[kruser53:]

Prof. Roubini:

I, for one, would much appreciate if you would post on SA more often.

Mar 01 03:39 PM