September 24, 2020 | 10:27
Looking for a New Home ... City or the 'Burbs?
U.S. economic momentum may be slowing in some areas, but housing is not one of them. The "WFH" movement, the desire for more space and more greenery is giving new oomph to the housing sector. (And low borrowing costs help.)
In August, existing home sales hit a 14-year high. And, new home sales did the same. U.S. new home sales unexpectedly rose in August, up 4.8% to 1,011,000 units annualized, the first time it reached the one million mark in 14 years, or since 2006. Plus, the prior three months were revised higher.. for example, July's 901k reading is now coming in at 965k. No wonder homebuilder confidence is at a record high! Demand continues to outstrip supply ... inventories of unsold new homes fell for the fifth straight month, leaving the months' supply at a record-low 3.3. Median prices actually fell from year-ago levels but they had spiked last August.
Yes, housing is one of the indicators that Fed Chair Powell was referring to this week... that are showing a "marked improvement". But unfortunately, that doesn't take us off of the "highly uncertain" path ahead.
On a separate note ..... the 2020 Institutional Investor survey is now underway! We are always grateful for your support and hope our ongoing commitment to providing best-in-class economic research and analysis earns your vote. Thank you!
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