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WSJ: Key to Real-Estate Rebound

By Anonymous

From Nick Timiraos and Anton Troinovski at the WSJ: Key to Real-Estate Rebound: Solid Economic Growth

"The No. 1 biggest risk is that, for whatever reason, the overall economy does not grow sufficiently to produce any meaningful rebound in jobs," said Thomas Lawler, a housing economist in Leesburg, Va.
...
New housing construction is stuck at its lowest levels in more than 40 years. "That will help absorb supply in ways that a lot of people underestimate," Mr. Lawler said.

The key to recovery in real estate is absorbing the excess supply. Lawler makes two key points: 1) We need job growth (and that would mean household formation absorbing the excess supply) and, 2) Housing completions are at record lows (not adding to the excess supply).

Earlier:
? Summary for Week ending January 1st
? Schedule for Week of January 2, 2011

Full post as published by Calculated Risk on January 02, 2011 (boomark / email).