Housing Data Wrap-Up: August 2010

We have slightly reduced our forecast for home sales and new home construction to incorporate more recent data. While the changes are relatively minor, the significance is that we needed to lower our numbers even further. Our housing outlook has consistently ranked among the lowest of regularly published forecasts. Our lack of optimism for the housing sector has been driven primarily by the lack … We have slightly reduced our forecast for home sales and new home construction to incorporate more recent data. While the changes are relatively minor, the significance is that we needed to lower our numbers even further. Our housing outlook has consistently ranked among the lowest of regularly published forecasts. Our lack of optimism for the housing sector has been driven primarily by the lack of improvement in the labor market. Potential homebuyers are also being held back by more stringent mortgage underwriting and more conservative appraisals, neither of which is likely to improve until the oversupply of housing is reduced. If all of this sounds circuitous, that is because it is; and this is one reason why the recovery process in the housing market is so slow and agonizing. Thank you for your interest in Wells Fargo’s Economic Commentary by email. You are receiving this message because you have requested Economic Commentary information and updates sent via email. If you no longer wish to receive these emails, please click on the following link to access the Economic Commentary by email registration page: http://www.wellsfargo.com/economicsemail.

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