U.S. Outlook: The housing sector still on solid ground

Scott Anderson
Posted by Scott Anderson
Chief Economist

Despite a disappointing new home sales report for January, the U.S. housing market is poised for continued gains in the months ahead.

Graph showing recent upward trend in existing home sales.Winter weather had an adverse impact on recent data, but it’s too early to call time on the housing market recovery.

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.
Click here to read my full report.

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