US 2H08 housing recovery view early - Deutsche

04 March 2008 18:16  [Source: ICIS news]

HOUSTON (ICIS news)--Belief that the troubled US housing market will recover in the second half of the year could be premature, according to Deutsche Bank on Tuesday.

“Overall, we think some investors may be getting optimistic too early, as a sharp recovery in volumes is unlikely in 2H08,” research analyst Nishu Sood of the bank wrote in a bulletin.

The bank said historical analyses are complicated for the current US housing market scenario, but observed the recovery following the California housing market crash in the late 1980s and 1990s “left markets in disarray for an extended period of time, immune to falling rates and constrained new construction”.

Home building represents one of the most important end-markets for a wide range of chemical products such as polyvinyl chloride (PVC), which is used in plumbing and insulation.

For more on polyvinyl chloride (PVC) visit ICIS chemical intelligence

By: John Waggoner
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