Some individuals have been predicting that a downturn is coming to the United States.
However, these predictors were sorely disappointed with the release of the newesthousing data.
This data is showing that there is no pending recession knocking on our doorsteps.
U.S. Existing home sales, months’ supply, and inventory from the end of 2005 – 2009 isfound below:
The Jump
Single-family households in the United States have reached the highest level of purchases in over eight years.
Wall Street is saying that this is representative of a healthy housing market.
Sales of homes have increased by 3.5%.
This brought it to an annualized pace of around 592,000.
This is the fastest past that has been seen since 2008.
New-home purchase data for the government are subjected to fluctuations from one month to the next.
However, a look at the bigger picture is showing that there have been steady gains in residential real estate.
This is being contributed to:
Stable and permanent employment
The small costs associated with borrowing.
The fact that wages are growing faster and building properties are being priced to accommodate buyers that are just entering the market can potentially make the market even stronger.
Deutsche Bank Securities Inc. economist Brett Ryan stated that the recovery is ongoing.
He further indicated that the necessary groundwork is still assisting housing.
He said that this should lead to a trend for at least the next year of steady growth. [ms_divider style=”normal” align=”left” width=”100%” margin_top=”30″ margin_bottom=”30″ border_size=”5″ border_color=”#f2f2f2″ icon=”” class=”” id=””][/ms_divider]
Renaissance Marco Research head of economics, Neil Dutta, reported that when the sales of homes begin going up, the spending on other goods that are durable picks up soon.
He says that the average price of sales has reason around 8.8% from last year.
He says that this is a good sign for homebuilders in the United States.
S&P Homebuilders ETF is enjoying a .5% increase in trading, while the S&P 500 has dropped by .23%.