May 16, 2005: Housing Market Expected To Stay Healthy
WASHINGTON - Despite some softening in U.S. economic growth, the Federal Reserve's ongoing interest rate hikes, and rapid price gains in the nation's hottest housing markets, economists at the National Association of Home Builders (NAHB) Spring Construction Forecast Conference said housing should remain healthy through next year even as it recedes from peak levels.
Driven by ongoing population growth and household formations, an expanding market for second homes, and the need to replace aging units, demand for housing should hold up well in the foreseeable future, the panelists said. Also, further growth in the nation's job force and rising incomes should help offset the negative impact of higher mortgage rates, which are still expected to be at affordable levels by historic standards.