Tuesday, January 27, 2009

Housing market tied to decline in new vehicle sales...


A report just announced at the NADA (National Auto Dealers Association) convention by the NADA's Chief Economist Paul Taylor, indicates that 2009 will rebound slightly from 2008 sales levels.

He further indicates that starting in the third quarter sales should increase to a annualized sales rate of 12.7 million vehicles. The sales rate is lower than last years sales of 13.2 million vehicles but is higher than Decembers annualized rate of 10.3 million vehicles.

There are other contrasting predictions that other analyst and automakers have predicted that are predicting sales as low as 10.5 million vehicles sold for 2009.

Mr. Taylor indicated that "auto sales are tied to the fall in Real Estate values, and in order for vehicle sales to recover in 22 states, housing values must stabilize. The states generally are located along both coasts, in the Northeast and around the Great Lakes. The states with the highest residential real estate value declines are Nevada, California, Florida and Arizona, and all of them have among the highest percentage drops in new-car registrations," Taylor said.

Taylor further predicted that 2010 should see stronger car and truck sales in 2010 as more young people reach car-buying age and get jobs.

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That Car Guy

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