Industry News

Slowdown forecast for U.S. real estate market

'Soft landing' expected in California

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A quarterly housing and economic forecast released today by the University of California, Los Angeles, calls for a slowdown in the U.S. economy through 2006, with declines in housing construction on the horizon. The latest Anderson Forecast revises an earlier prediction of a rapid slowdown in the overall economy and housing construction. "The slowdown is now considered to be more gradual than predicted in June as the projected reduction in housing construction is still in the future," according to an announcement about the forecast. "In California, there are hopes for a 'soft landing' as the economy weakens over the next two years. The Los Angeles forecast mirrors that of California, as a number or risk factors including payroll employment and residential real estate pose a threat to the moderate growth currently being experienced." Michael Bazdarich, a senior economist for the UCLA Anderson Forecast, in June had said that "substantial declines" were expected in U.S. housi...