Trade group bullish on housing

By Staff -- Home Textiles Today, 2/2/2004 12:00:00 AM

WASHINGTON —

Coming off one of the strongest housing markets in years during 2003, the nation's home builders say they're poised for another strong showing, as historically low mortgage rates continue to drive business.

"Based on our expectations for mortgage rates, house-price performance, household formations and overall economic conditions, we're very optimistic that demand for new homes and apartments will settle at a slightly lower, but still robust level in the new year," said Kent Conine, president of the National Association of Home Builders.

Sales of new single-family homes should once again break the million-unit marker, the trade group said, but are expected dip by 3.5 percent, to 1.45 million units.

Apartment construction is forecast to slip more slowly, giving up 1.5 percent in 2004.

"In the multifamily sector, a strong condo component and solid production of federally subsidized low-income rental housing will continue to provide essential support to the market, while better job growth will help combat high vacancies in market-rate rental housing," said Conine.