A string of reports to come this week is expected to confirm the U.S. housing market has bottomed:
- Monday – Home Builders Sentiment Index (21 in Dec, 19 in Nov)
- Tuesday – Housing Starts (+9.3% to 685,000, permits +5.7% Nov)
- Wednesday – Existing Home Sales (+4% Nov)
- Thursday – House Price Index (-0.2% Oct)
- Friday – New Home Sales (+1.6% Nov)
One economist in this article from Reuters acknowledges a slow “curing” of the housing market is underway, while reminding it will be “a multi-year process.” Three reasons for cautious optimism are cited:
- Inventory of new homes at record low
- Home Builders sentiment on the rise since June – to a level last seen in April 2010, when taxpayer credit encouraged home buying
- Mortgage lenders have loosened down payment requirements, qualifying more people to buy.
Meanwhile, there’s strong growth in the construction of rental units, “a trend expected to continue next year.” Speaking of housing trends, Renting Gets Glamorous?