Analyst Predicts Improvement in Home Building

Credit Suisse home-building analyst Dan Oppenheim predicts in a note to clients that 2010 will be a strong year for home builders, but also points out these threats to the business:
Expiring tax credits: Oppenheim writes, “Pulled-forward demand will likely lead to subsequent slowing starting in May. The concern is what happens after that.”
Rising mortgage rates.
Continuing foreclosures: “The continued supply of foreclosures will mute any improvement in demand,” Oppenheim wrote.
Tightened FHA standards: Oppenheim wrote that this would cut demand for new homes by 5 percent to 10 percent.
Unemployment: “People without jobs don’t buy homes,” Oppenheim wrote.

Source: The Wall Street Journal, Dawn Wotapka (02/12/2010)

Signup for our Newsletter

Neil D. Lyon CRB, CRS, GRI Cell: 505.660.8600 Direct: 505.954.5505

Sotheby's International Realty 326 Grant Avenue Santa Fe, NM 87501

Design by Santa Fe Web Design


Visit Sotheby's International Realty®

This web site is not the official web site of Sotheby's International Realty, Inc. Sotheby's International Realty, Inc. does not make any representation or warranty regarding any information, including without limitation its accuracy or completeness, contained on this web site. Equal Housing Opportunity.