Commentary
For the moment, residential real estate seems to vibrate between powerful positive and negative forces.
Their interplay will likely produce an uneven picture for the next few months. But in the fullness of time—say, late this year and certainly by 2023—the negative influences will predominate. The sector will suffer a correction, nothing like 2008 and 2009, but a correction, nonetheless.
Statistics so far paint a mixed picture. Residential construction activity remains strong. The Commerce Department reported that after a 6.8 percent jump in February, the construction of new residences rose another 0.3 percent in March. Construction is almost 4 percent higher than in March 2021. Strength showed in every region of the country.
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