Industry News

South weathers housing correction best

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While most housing markets throughout the country experienced a year of decline in 2006 following the boom levels of the previous two years, 2007 is expected to be a year of transition, with growth emerging in many areas, according the National Association of Home Builders' (NAHB) Regional Housing Starts Forecast. "Because the boom and correction cycle has largely been driven by national rather than local factors, most regions have experienced some degree of overheating and correction," said NAHB Chief Economist David Seiders in a statement. "We expect 2007 to be a time of transition in most regions, with housing starts bottoming out in the early part of the year before transitioning to gradual recovery paths." NAHB said the earlier boom in housing can be attributed largely to excess demand generated by historically low interest rates coupled with aggressive mortgage lending practices, a combination that made home ownership more affordable but also attracted investors and s...