Henry Fishkind, of the consulting firm Fishkind & Associates said Tuesday that “2008 is the consolidation year. 2009 and 2010 will be better. I believe we can see the bottom,” referring to the bottom of the current economic cycle.
Home sales, starts and prices have dropped in the region since late 2006, according to industry data. There are now fewer housing starts than sales, Fishkind said. “That’s the first indication of the bottom of the cycle.”
Fishkind expects the national economy to improve later this year after taxpayers start spending Treasury-issued checks. Fishkind said while the tax rebate checks will spur a recovery, he warned that prices would go up.
“There will be some inflation next year,” he warned. As a result, the Federal Reserve will be forced to raise interest rates to squeeze inflation out of the economy.
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