Industry News

Wall St. vs. Main St.: Real estate forecast

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The real estate market is gliding toward a soft landing in 2006, according to a Wall Street economist and a real estate economist who discussed the issue in a national teleconference Tuesday. What was billed as a debate between Wall Street and Main Street sounded more like a duet by the time David Seiders, chief economist for the National Association of Home Builders, and James Glassman, senior economist for JP Morgan Chase, ended the NAHB-sponsored teleconference. "I do foresee weakening of the housing sector, but this should be a simmering-down process toward a more realistic condition, not part of a classic housing downswing leading to a recession," Seiders said. The economist predicted that housing prices, which he said increased about 11 percent nationally this year, would increase about 6.5 percent in 2006 and about 4.4 percent in 2007. Seiders said this was because growth in the Gross Domestic Product would be strong, though not as strong as in 2005, and job creation would happ...