Housing markets to be slow next year, US Fed

Kohn.jpgIn 2006, there were 2.2 million US housing starts. These were worth $35bn of chemical sales.

Currently, and even with the support of an $8k tax credit, they are running at an annual rate of just 600k, worth $10bn. This is the lowest level since records began in 1960. Even in 1975, 1981 and 1981, starts only fell to 800k.

Now the vice chairman of the Federal Reserve, Donald Kohn, has forecast that we will only see “a relatively subdued pickup in housing starts over the coming year“. He suggests that inventory of new homes “remains elevated“, and expects the pace of foreclosures to “remain very elevated for a while“.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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