ICA}, lnC.

In addition, there is some evidence that the homebuying market is softening. The inventory of unsold new homes has been creeping up steadily over the past year, while monthly sales have been declining since spring.

To some extent, moreover, the 1978 housing market has been buoyed up by inflation-hedge buying on the part of purchasers who see real estate as a profitable investment and therefore are willing to shoulder abnormally large mortgage commitments. As the economy slows and consumers become less confident of job and income security. a more cautious approach to homeownership seems inevitable.

In 1979, therefore, housing starts are likely to decline l0- l5%r from the near 2 million pace of 1977 and 1978, with the impact greatest in states with usury lids and/or with less intensive housing demand.

Housing production should hold up reasonably well, on the other hand, in those areas of the country where recent, rapid growth in employment and population has pushed housing vacancy rates to rock-bottom levels and where the impact o[ a more sluggish national economy will be mild due to the particular industry mix. Among these areas, count Washington State.

WWPA Statistical Yearbook

The 1977 wwPA Statistical Yearbook ($25) contains a wide range of data lrom 1977 and preceding years about lumber orders, production, shipments, inventories, destination olshipments, housing starts, forest lacts and other information. Write Western Wood Products Assn., 1500 Yeon Bldg., Portland, Or. 91204.