Happy New Year! As 2010 draws to a close this week, Chicago's housing market ended in what can be described as a "stable" state. Our unemployment held steady at 8.9 for the second month in a row, while the existing home median price decreased to $175,000 from the previous month's $177,000. The definition of the word stable is "the strength to stand or endure." We believe that our market will continue to stabilize as we head in to 2011, which is good. But today we read that some investors and industry executives are actually forecasting a much better future for us. Here are some morsels that may give you reason to break open a bottle of bubbly this weekend.
Charles Lieberman, chief investment officer at Advisors Capital Management LLC, says home construction will definitely improve in 2011 due to the increasing US population. This rise in homebuilding will lead to an increase in jobs related to construction and industries supplying stoves and sinks that go into new homes. Lieberman forecasts jobs will rise by an average of 200,000 a month next year. "The housing market is going to shock people," said Lieberman, former head of the monetary analysis at the Fed Bank of New York. "Once we get the ball rolling, it becomes easy to roll."
Douglas Yearly, the chief of index-member Toll Brothers Inc., said he believes the worst is over for housing. "The recovery is here to stay. I think 2011 will be an improving year, but I think 2012 will be a big year for us." To read the entire Dec. 28 Bloomberg article, click here.
Billionaire investor Warren Buffet also said recently he predicts the real estate slump would end by 2011. He's been personally investing in many building product manufacturing companies, getting ready for a big rebound in construction.
Let's hope they are correct and we can all enjoy a prosperous future. We wish you a Happy New Year and a 2011 filled with much joy, good health and happiness!
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