U.S. housing market poised for new boom: economist
Ottawa — The Globe and Mail
Published Wednesday, Jun. 27 2012, 3:27 PM EDT
The U.S. housing market is doing much better. And it’s now on the cusp of what could be a dramatic turnaround.
That’s the conclusion of a new report by Vancouver-based independent housing economist Doug Smyth, who argues, among other good things, that millions of newly created jobs will eventually power another boom in demand for softwood lumber.
Mr. Smyth’s prediction is based on a much more impressive recovery in the U.S. jobs market than is generally recognized. That’s driving mortgage foreclosures down, and household formations and consumer spending up.
The result is enormous pent-up demand for homes, which he likened to a boiler rapidly filling with steam. Part of the untold story is new demand coming from a generation of foreign-born Latinos, who are waiting to jump into the market.
“The U.S. economy is now close to the tipping point, where increased employment will generate significant increases in all types of homes,” argued Mr. Smyth, former research director at the Industrial Wood and Allied Workers of Canada.http://www.theglobeandmail.com/report-o ... le4374679/