US housing market fix underway - Wachovia

08 June 2007 22:34  [Source: ICIS news]

MYRTLE BEACH, South Carolina--The US is at least half-way through a housing market correction, an economist said on Friday at the Southeast Chemical Conference (SECC).

The US housing market is an important downstream consumer of many chemicals and chemical products, including paint and coatings, resins and vinyls.

“New residential construction will remain weak, but the bulk of the drag is behind us,” said Mark Vittner, director and senior economist of Wachovia.

Housing remained a regional concern, according to the June economic outlook published by Wachovia.

Structural weakness was present in the midwest, and cyclical weakness continued in the former “hot” markets, Vittner said.

Population growth has slowed significantly in California, Florida, New Jersey and northern Virginia - states where house prices rose dramatically. The big winners in the market change are Arizona, Texas, Georgia and the Carolinas, however, Vittner said.

"New and existing home sales remain under pressure from high inventories,  but we think the worst part is over," Vittner said.

The SECC conference ends on Saturday.
By: Heather McGuire Doyle
+1 713 525 2653

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