This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Don't Get Too Excited About a Housing Recovery: NY Fed's Dudley

NEW YORK ( TheStreet) --Various housing market indicators might be looking up, but it may be too early to get excited about the housing recovery,

Speaking at a distressed real estate conference on Friday, New York Federal Reserve President William Dudley, who also serves as vice chair at the interest rate setting arm of the Federal Reserve, said that housing market had failed to respond to monetary policy.

He pointed to several housing market indicators that remain weak despite the recent rebound.

"It is true that various housing market indicators have looked somewhat better of late. Housing starts and sales of new and existing single-family homes are trending up gradually. Nationally, home prices have stabilized and begun to rise modestly after falling roughly 30 percent from their 2006 peak," said Dudley in prepared remarks. "However, the absolute level of starts and sales remain quite low, particularly when viewed on a per-capita basis. Moreover, housing market conditions still vary significantly across the country, with the worst performing counties still experiencing high volumes of distressed sales and annual house price declines of around 5 percent."

That limits the ability of housing to contribute more positively to economic growth, he noted.

He attributed the sluggishness in the housing market to familiar problems of constrained credit, the inability of underwater borrowers to refinance and the continuing onslaught of seriously delinquent loans that are adding to the foreclosure pipeline.

Separately, the New York Fed released new data about the distressed residential real estate market.Through a series of interactive maps, viewers can explore the current status of foreclosed inventory and future scenarios at national and state specific levels.

Among the findings, California, Michigan and Florida account for 30% of the total real estate owned (REO) property in the market.

Also, if the average number of days properties remain seriously delinquent and in foreclosure increases, foreclosure inventories could triple in New York and double in New Jersey. You can explore more about your state here.

--Written by Shanthi Bharatwaj in New York
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%
YHOO $36.01 -1.42%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs