“The housing market is on fire and a very bright spot in the US V-shaped recovery since The China Act of War Virus pushed the US economy in February into an instant recession” — Paul Ebeling
This narional market boom is aiding the financial wellbeing of American homeowners and is a tailwind to President Trump heading into the homestretch to the election on 3 November.
The sentiment heading into the election varies based on how individual voters are faring, but overall my work shows that it is clear lift to President Trump, the incumbent Republican over Democrat Joe Biden.
The National Association of Realtors (NAR) this week reported US existing home sales spiked nearly 10% in September to marks not seen in more than 14 yrs.
Much of America’s wealth is vested in the home citizens live in, and it offers a financial buffer Vs any financial uncertainty that remains during the chaos.
It has also been a boon for builders, who are as confident as they’ve ever been, the National Association of Home Builders reported this week, as they rush to meet the demands of a severely under-supplied housing market. Indeed, single-family housing starts are proceeding at the fastest clip in 13 yrs
Across the nation, the gains in home sales are concentrated in the higher end of the market, and people with stable jobs have been/are able to buy houses, but some 1st-time buyers or those looking for affordable housing may not be ready to buy just yet. They will wait till later.
The median price of an existing home is nearly 15% higher than last year. Sales in resort areas have been particularly strong, the NAR said this week.
There are homeowners who lost jobs or had their pay cut during the chaos are also struggling. But, any uncertainty over what will happen when existing forbearance protections expire next March is being allied by President Trump promise to work for all Americans during the next 4 yrs, and that is a positive that will be on voters’ minds on 3 November, especially after Thursday night’s debate that flayed Joe Biden.
It is generally expected that the 3-M homeowners in forbearance will be able to resume mortgage payments or that foreclosure moratoriums will be extended.
But, now homeowners are keeping up with mortgage payments. The number of seriously delinquent mortgages, or those at least 90 days late, declined in September for the 1st time since the medical emergence chaos started, according to data released Thursday.
The US homeowner sentiment is positive and a blessing for President Trump just before the election.
Looking Ahead: Investors will receive New Home Sales for September Monday.
Making and Keeping America Great!
Have a healthy weekend, Keep the Faith!