The Fed’s monthly purchases of bonds has been housing friendly. Reading the tea leaves from this week’s FOMC Meeting, the central bank could begin to reduce the pace of buying toward the end of this year. Sales of new homes … Continued
Household formation has picked up speed, as have sales of homes, putting downward pressure on the supply of homes and upward pressure on prices. Prices are appreciating seven-eight times the rate of consumer inflation, hence not sustainable. US households are … Continued
Job growth and household formation are healthy. However, housing starts are falling behind. Not to mention the yawning gap between renter-occupied versus owner-occupied housing units. The post-financial crisis recovery is just three months short of completing a decade. Great Recession … Continued
Interesting dynamics are at play in U.S. housing. Sales of both existing and new homes are decent, but price has galloped ahead. Add to that household formation and supply of homes, housing could very well be at an interesting juncture. … Continued
U.S. households have experienced steady growth for two and a half years, but also lag vis a vis growth in several other metrics. Steep rise in home prices possibly to blame? After going sideways for nearly two years (indigo bi-directional … Continued
There probably is an air of excitement among U.S. housing bulls – particularly the technically oriented ones. Sales of both new and existing homes have broken out of recent ranges. In June, new homes rose 3.5 percent month-over-month to a … Continued
There was a bit of good news in pending home sales on Monday. The index jumped 3.5 percent month-over-month in February to 109.1 (Chart 1). This was the sharpest sequential increase in a year. Pending home sales are based on … Continued
U.S. household formation seems to be stalling. Again. Last year, there were 117,707 households in December, 117,342 in April, and 117,816 in October. When Great Recession ended, there were 110,284 households in June 2009, and grew steadily, to 114,720 in … Continued
ITB, the iShares Home Construction ETF, has broken out. Support at $26 goes back to May 2013, and was defended several times during late April and early June. Since late April, ITB had also been trading within an ascending channel. … Continued
U.S. home builder sentiment in June jumps, to match post-bubble high of last September Recent spike in interest rates, if sticks, potentially shot across housing bow ITB acts tentative, but has not given up on crucial 26 support U.S. home … Continued