At least some analysts are bullish on housing.
William C. Wheaton, professor of economics at Massachusetts Institute of Technology, argues that the housing market is due for improvement, calling home construction, “a sleeping giant that is about to wake up.”
Wheaton believes that because there has been so little construction that demand exceeds the level of building and it will soon absorb excess inventory.
“Housing construction will not only rise, but it will stay high for a while, which didn’t happen in previous recoveries,” Wheaton predicts.
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The latest building permit report by
ity of a rebound. Then, lo, authors of said analysis, Steven Gjerstad and Vernon Smith of Chapman University (Orange, Calif.), show up with an op-ed piece in the Saturday Wall Street Journal. Briefly, they say, recoveries just don’t get going unless housing gets going first. Likely take-away? Policy makers won’t be able to resist more plans to fix housing.