The U.S. demand for new homes may not return to normal levels until next decade, a CNN website report quotes the latest outlook from the National Association of Home Builders as saying on Thursday.
"Traditionally when housing has been in a recession, it recovers very quickly. We don't see that happening this time," Jerry Howard, CEO of the builders' trade group said.
"It could be 2010 before we see sustainable, long-term stability in the home building sector," he said.
As recently as the end of 2007, the trade group was forecasting a pick-up in the demand for new homes in the second half of this year, says the report.
But Howard said the best case scenario now calls for stabilization in the market in early summer, with no signs of improvement until early next year, the report adds.