US Real Estate News: Recovery or Not?
US home prices may be rising, but it is too early to say that the housing market is in a full recovery.
US Federal Reserve policies that aim to push already low interest rates even lower does not fuel more demand for housing. Housing by its nature takes time to bottom, recover and gain momentum.
Seasonal factors can cause home price and sales data to move up, plus gains in parts of the United States may not reflect the broader national trend.
In a prior housing cycle, home prices peaked in Y 1990 and started falling, and it it took 10 yrs + for the market to start up again, this decline is only 6 ys old.
It may still be going down, and there are a lot of world economic problems that are headwinds in the US.
To stimulate the economy, the US Fed recently announced plans to buy $40-B in mortgage-backed securities held by banks every month until the economy and labor market improve, a monetary policy tool known as quantitative easing (QE-3).
Quantitative easing works by pumping the financial system with liquidity in a way that pushes down interest rates to encourage investing and hiring, though borrowing costs are already low, including mortgages.
The government wants you to buy, so now we are seeing mortgage rates at record lows. Inexpensive financing and low home prices may convince would-be home buyers to be patient and wait for things to go lower. This does not feel like an urgent time from my POV. Be patient.
US home prices rose 4.6% on year in August, the largest annualized increase in more than 6 yrs, according to CoreLogic, a private real estate data provider, which added that prices rose 0.3% in August from July, the 6th consecutive monthly gain.
The housing market’s gains are increasingly geographically diverse with only 6 states continuing to show declining prices,” said the chief economist for CoreLogic.
- Chopard Jewels Robbed from Hotel Room at Cannes Film Festival
May 18, 2013
- Gold Will Watch the USD and US Fed Chair Bernanke Next Week
- IRS Official in Targeting Scandal Now Oversees Obamacare Unit
- Angelina Jolie: Genetic Testing is Surprisingly Easy
May 17, 2013
- US condemns Osaka’s Mayor’s remarks on WW II Sex Slaves
Heffernan Capital Management
Business Development Director – Private Client Group,
3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408
Fax: +65 6329 9699
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
Best Hedge Funds 2013
Working with some of the World’s largest financial institutions HCM’s goal is to provide portfolio returns that exceed the S&P 500 Index benchmark while …
Shayne Heffernan: How to Develop an Inflation Hedge 2013
QE1, QE2, QE3, the Bernanke “Twist” and QE4 are pumping out money at a rate never before seen in …
Chopard Jewels Robbed from Hotel Room at Cannes Film Festival
$1-M worth of Chopard jewelry has been stolen at the Cannes Film Festival.
French police confirmed to …
The Hot List
Enviro-Serv Inc (OTCMKTS:EVSV), Medical Marijuana Inc (OTCMKTS:MJNA)
Enviro-Serv Inc (OTCMKTS:EVSV)
EVSV had a stellar dy yesterday, ut it looks like it is just the begining of big things, good …