Reply #15: Denial Report: No recession from Calif. housing slowdown-report [View All]

[UpInArms]

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-09-28T075745Z_01_N27348147_RTRIDST_0_ECONOMY-CALIFORNIA-FORECAST.XML

SAN FRANCISCO, Sept 28 (Reuters) - The slowdown of California's housing market has become a drag on the state's economy as home building and financing payrolls thin, but the most populous U.S. state will avoid recession through 2008, according to a UCLA Anderson Forecast report.

The report, released on Thursday, projected California will through 2008 post overall payroll growth of around 1 percent, a rate similar to that in the first half of this year.

"The housing market has continued to soften and real estate-related employment has moved from a major engine of growth in 2005 to a drag on growth in 2006," the report said.

"Looking forward, the forecast calls for a similar picture," the report said. "Real estate sectors will continue to decline, but without significant declines in another sector, the net result will be a slowdown, not a recession."

Building permits in California will continue to decline, hitting bottom in 2008, the report noted.

A separate report by the economic forecasting group predicted that while home sales in California fall, home prices will not.

...more...

Wow! These spinners really must have some tasty kool-aid! First there was no housing slowdown and now there will be no recession :eyes:

Also, if sales fall, prices are likely to follow that trend. Unless... black is white, up is down and war is peace.