Housing Market Predictions: Rising Prices and Capital Challenges Ahead

Shlomi Ben-Ezri, CEO of the New Contractors Association, has predicted a 5% increase in home prices nationwide in 2009. In an interview with Globes, he attributed this growth to a combination of factors, including a shortage of housing inventory, a long construction period, and a slowdown in the market. This situation is expected to lead to a period of unmet demand, driving prices upward.

Key Takeaways:

• Shlomi Ben-Ezri, CEO of the New Contractors Association, predicts a 5% increase in home prices nationwide in 2009.
• The housing inventory is sufficient for only a few months, leading to a potential shortage and price increase.
• Contractors are operating at 70% capacity, with 31% of infrastructure contractors operating below capacity due to difficulties accessing capital.
• The problem of access to capital is particularly acute in the south, where many contractors are operating at 50% capacity.
• The Association of Contractors and Builders' actions have led to some steps being taken towards unity, but the process is ongoing.

Statistics:

• 70% capacity: the operating rate of most contractors (Globes)
• 31%: proportion of infrastructure contractors operating at 70% capacity or below (Globes)
• 50% capacity: the operating rate of many contractors in the south (Globes)
• 2009: predicted year of a 5% increase in home prices nationwide (Globes)

Sources:

• Globes, "Globes" interview with Shlomi Ben-Ezri, CEO of the New Contractors Association (2009)
• McClatchy-Tribune Information Services