The US housing sector won’t recover until summer 2010 and the residential construction sector won’t be back on its feet until 2011, the Portland Cement Association predicts.
The industry group said Monday that adjustable mortgages, tight lending, toxic assets and increased government regulation of mortgages will hamper housing markets through the rest into 2010.
“Housing construction activity cannot begin until sales recover,” said Edward Sullivan, chief economist for cement industry association. “Increased foreclosures, coupled with deteriorating labor markets and tight credit conditions, will delay significant sales activity until mid-2010. Improvements in housing starts are not expected to be significant until 2011.”
Sullivan said the federal government must continue infusing money into the financial sector to free up lending.
“Without further government cash injections into the banking system, tight lending standards could characterise the economy and mortgage lending through mid-2011 dragging down home sales,” he said. “Under such a scenario, the housing recovery and overall economic recovery could be delayed significantly.”