Morning Briefing: Economists hail the strong housing market

by MPA08 Jun 2015
Economists hail the strong housing market
There has been mixed data recently on the state of the US economy but many analysts are united in their view of the housing market; it’s strong and set for further growth. While there are regional variations the overall trend is positive and Business Insider reports that analysts believe that the housing market will be a major driving force of economic growth. Morgan Stanley economists wrote last week: "May was arguably the most positive month for housing data in quite some time, and Monday’s construction spending print was the cherry on top." Economist Jonathan Smoke from added another note of optimism following Friday’s jobs data which showed more millennials in work. Smoke highlighted that they are the most likely group to become first time buyers which should give an added boost to the housing market.
More renters despite higher rents
There are an increased number of renters in 11 of the largest US cities despite rents increasing. That’s according to a report from NYU Furman Center and Capital One which showed that rents rose faster than inflation in those markets and in three of the cities there was an increase of more than 10 per cent between 2006 and 2013. Although homeownership is still very much part of the American Dream it seems that the freedom of renting is taking precedence over the financial sense of buying a home for many Americans.
Denver market is hot as builders near annual sales targets already
Builders in the Denver metro are close to achieving sales targets for the whole of 2015, with more than 6 months to go. John Burns Real Estate Consulting reveals in the Denver Post that many builders were at 70 to 90 per cent of their annual sales targets by the end of April compared to a national average of 43 per cent. Some builders have slowed sales as they can’t get homes finished fast enough. The report says that it is taking around 9 months to a year for buyers to move in from the time of signing the contract and lots ready for building at record prices.
Real Housewives of Atlanta star buys estate
NeNe Leakes, one of the stars of Real Housewives of Atlanta, has bought a new estate in Duluth, GA for $2 million. The 6 bedroom home is in the gated community of Sugarloaf Country Club and has two kitchens and a pool. If Leakes is a golf fan she’s certainly right on course for a few rounds, as the home is just a short putt from the second hole of the club’s course.