Harvard study predicts long return to healthy housing market

A new study from harvard university predicts housing woes will continue as the economy wavers from the sharp drop in home building, credit and stock market turmoil, and a slowdown in consumer spending.

The report, The state of the nation's Housing 2008, released Monday by the Joint Center for housing studies, a collaborative effort by Harvard's kennedy school of government and the harvard design school that researches housing in the United States, said pressure of home prices will persist until the backlog of vacant homes is sold.

"Further price declines will not only increase the probability that mortgage defaults end in foreclosure, but also put a tighter squeeze on consumer spending," the report stated.

The report comes out as new home price data shows continued price declines in April, and consumer confidence plunged to a 16-year low.

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Wednesday, June 25, 2008 |

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