How will all the current changes in the U.S affect the housing market?
RP: We have a mindset across the U.S. of what I call, “Recession, Depression, Obsession.” With all the negative media, consumer confidence is at an all-time low. Business in general is controlled by the mindset of the consumer; 70% of the gross domestic product (GDP) is driven by the consumer. We are now faced with a negative consumer mindset-most of which is based on what they’ve heard and read. We’re in for an extended recession. If people continue to obsess over that, they will hold tight. Hopefully, with a new Washington and new efforts put in place this year, perhaps we’ll see an uptick and begin the process of recovery and a return to optimism…but it’s going to be tough. RE: It stands to reason that the U.S. economy will not be well for some time. What type of marketplace do you see for 2009? RP: Going forward, the marketplace is clearly more realistic and more in line with a balanced market. A good barometer is the pre-boom existing-home sales of 5 million per year. In the boom
