Wednesday, January 03, 2007
The Housing Market Doing Better than Expected for 2007
New Home Sales and Existing Home Sales figures both showed amazing resiliency in the sector and markets are beginning to wonder if the worst of the housing decline is over.
This changes expectations for economic growth in 2007.
We don't know why the numbers were so strong, but only that they dramatically exceeded what economists predicted. Perhaps mortgage rates were on a downward trajectory in November and that lowered the effective cost of owning a home. Or, perhaps sellers finally cracked and agreed to buyer demands. Nevermind the record amount of cancellations, either,
You can only hear the phrase "Buyer's Market" so many times before you actually begin to believe it.
It's still "all eyes on the Fed", though. The Fed has consistently said that it expects housing to lead a broader slowdown in the economy this year and now that housing is not slowing down, the economy is not expected to, either.
This changes expectations for economic growth in 2007.
We don't know why the numbers were so strong, but only that they dramatically exceeded what economists predicted. Perhaps mortgage rates were on a downward trajectory in November and that lowered the effective cost of owning a home. Or, perhaps sellers finally cracked and agreed to buyer demands. Nevermind the record amount of cancellations, either,
You can only hear the phrase "Buyer's Market" so many times before you actually begin to believe it.
It's still "all eyes on the Fed", though. The Fed has consistently said that it expects housing to lead a broader slowdown in the economy this year and now that housing is not slowing down, the economy is not expected to, either.
# posted by royhomes : 3:26 PM
