Christine Canning Esposito10.16.06
A year ago, the U.S. housing market was one of the hottest parts of the U.S. economy. Low interest rates and creative mortgage packages were fueling new and existing home sales. As a result, several downstream industries, from moving companies to architectural paint makers, were reaping the rewards.
A year later, the residential real estate market has cooled substantially (with talk of "bubbles bursting" in select areas), marked by rising interest rates (and foreclosures). According to the U.S. Commerce Department, sales of new homes in July fell 21.6% from the record monthly high set in July 2005, and, on a year-to-date basis, new home sales were down 14.2% compared with the first seven months of 2005.
But the good news is, a slow down in new home sales has only a minimal impact on the decorative paint market.
"Slowing sales of new homes, in and of itself, should not be cause for too great a concern. The vast majority of architectural paint sold in the U.S. is for maintenance or repaint," said Scott Detiveaux, senior consultant with Orr & Boss, Inc.
However, recent reports on existing home sales-a significant influence
A year later, the residential real estate market has cooled substantially (with talk of "bubbles bursting" in select areas), marked by rising interest rates (and foreclosures). According to the U.S. Commerce Department, sales of new homes in July fell 21.6% from the record monthly high set in July 2005, and, on a year-to-date basis, new home sales were down 14.2% compared with the first seven months of 2005.
But the good news is, a slow down in new home sales has only a minimal impact on the decorative paint market.
"Slowing sales of new homes, in and of itself, should not be cause for too great a concern. The vast majority of architectural paint sold in the U.S. is for maintenance or repaint," said Scott Detiveaux, senior consultant with Orr & Boss, Inc.
However, recent reports on existing home sales-a significant influence
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