NAHB: Economy May Be Headed for 'Red Zone'

Inman News (02/28/08)
National Association of Home Builders chief economist David Seiders now expects total housing starts to decrease 25 percent in 2008, with single-family starts on track to slide 31 percent. In his latest forecast, he writes: "We still expect starts to begin edging up in the final quarter of this year, but we've also trimmed the outlook for 2009." Seiders adds that there is "a nearly even chance" that the U.S. economy will fall "into the red zone" during the first six months of this year. He concludes that the Economic Stimulus Act of 2008 recently signed by President Bush does offer some hope, as its temporary increases in loan-size limits will likely offer the most relief in such high-cost housing markets as California.