Housing Recovery Strong due to Pent-Up Demand

Noting that it is reasonable for consumers to pause during an economic bubble, Moody’s Investor Services says as mortgage rates and home prices stabilize, home buyers will return to the market to begin satisfying long pent-up demand. Traditionally, as HousingWire reports, homebuilding depends upon new household formation. But because real household income has remained flat or fallen each year since 2007, homebuilding will level off at a much lower rate than in past recoveries. Nevertheless, as the National Association of Home Builders (NAHB) informs MHProNews, although the hardest hit states will take longer to recover than others, homebuilders will be 50 percent back to normal by year’s end, 70 percent back by the end of 2014 and above 90 percent by Dec. 31, 2015.

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