A senior economist with the National Association of Home Builders says home construction in Minnesota will likely lag the U.S. when the industry starts to rebound in the next year.
Economist Elliot Eisenberg predicts national home sales and building will hit their lows this quarter. A few months after that, Eisenberg expects to see home prices and foreclosures fall to their lowest points. He said pent-up demand could then fuel positive growth in the housing market in about 9 months.
But Eisenberg said Minnesota's housing recovery may be slowed by the state's weak labor market. Minnesota's job growth, trailed the national average over much of the past few years.
"You're not going to grow as fast as the rest of the country. So the pent up demand here will be less than it is in other parts of the country," Eisenberg said. "It will take longer for it to happen. It will happen, but it'll be a little slower, little less robust, little smaller."
Eisenberg said continued problems in the credit markets or commercial real estate could yet stall a recovery nationwide.