Housing Market: Long Road to Recovery

Housing Market: Long Road to Recovery

Former Federal Reserve chief Alan Greenspan said recently the housing market has a long way to go before stabalizing after the subprime crisis.

Greenspan, who has been outspoken throughout the credit crunch, said more house price declines were likely given a surfeit of supply but pointed to signs the lending crisis could be coming to end as demand for more risky assets grows.

Official data shows a U.S. housing recovery is some way off with new home sales falling more than expected in August to notch their slowest rate in seven years and prices recording their sharpest annual fall since 1970.

Analysts said those figures largely reflected conditions before the mid-August market turmoil set in.

Greenspan said signs were emerging the credit crisis could be coming to an end.

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