U.S. Outlook: The housing sector still on solid ground
Despite a disappointing new home sales report for January, the U.S. housing market is poised for continued gains in the months ahead.
For more economic analysis, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Feb. 26.Key observations:
- According to the NAR, existing home sales crushed analysts’ expectations and signaled that the sector will continue recovering in 2016.
- We believe the January setback in housing starts data was mainly weather-induced.
- Perhaps the clearest indicator of improving housing demand comes from the mortgage purchase applications data.
- We expect a 10.2% increase in total housing starts in 2016.