Daily Real Estate News  |  November 29, 2006  |   Fed Chief Bernanke Sees Housing Still at Risk
The biggest risk facing the economy right now is the flat housing market, Federal Reserve Chairman Ben Bernanke said in a Nov. 28 speech to the National Italian American Foundation.

According to the economist, "The correction in the housing market could turn out to be more severe and widespread than seems most likely at present."

While home sales appear to be stabilizing, he remains concerned about rising inventories and additional declines in construction activity and also is "uncomfortable" with the current level of inflation.

In addition to increased unemployment in housing-related industries, Bernanke is worried that a drop in home equity will put a damper on consumer spending.

-- Washington Times, Patrice Hill (11/29/06)