TRADEX GLOBAL INTERNAL COMMENTARY
Sales of existing previously owned homes climbed to the
highest levels in 2 years. Purchases
increased 7.8% to a 4.82 million annual rate.
These are great numbers and it shows that the lowest mortgage rates in
history and slowing foreclosures is actually working. The last quarter posted its first
year-over-year gain in prices which could induce sellers and buyers back into
the market. We believe that the housing
market has bottomed and our liquid real estate assets are doing well. The world may be very scary in many different
investment sectors, but we believe that the real estate sector has a fair
amount of upside. Keep nimble – Michael Beattie
EXTERNAL RESEARCH COMMENTARY
Sales of previously owned homes and work on
single-family projects climbed in August to the highest levels in two years,
signaling the residential real-estate market is contributing to the U.S.
economic recovery. Purchases of existing houses increased 7.8 percent to a 4.82
million annual rate, the most since May 2010, figures from the National
Association of Realtors showed today in Washington. The median forecast
of 78 economists surveyed by Bloomberg called for sales to increase to a 4.56
million pace. Commerce Department data showed builders began work on the most
one- family homes since April 2010. Record-low mortgage rates, more
affordable properties and limited supply of new homes are driving orders at
builders such as Toll Brothers Inc. (TOL) and Hovnanian
Enterprises Inc. (HOV) In addition, sales of distressed properties are
starting to account for a smaller share of the market, leading to gains in home
values that are laying the groundwork for a sustained economic expansion as
household sentiment and finances improve. “The nascent housing recovery has
deepened,” said Ellen Zentner, a senior U.S. economist at Nomura Securities
International Inc. in New York, who projected existing-home sales would
climb to a 4.85 million rate. “Ultimately, this improvement will lead to a rise
in residential wealth, which tends to lift consumer confidence and
spending.” The Standard & Poor’s Supercomposite Homebuilders Index
(S15HOME) rose 3.1 percent at the close in New York, while the S&P
500 gained 0.1 percent. The pickup in housing helps explain why the index
of builder shares, including PulteGroup Inc. and D.R. Horton Inc., has surged
83 percent this year, outpacing a 16 percent gain in the broader S&P 500.
Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com
203-863-1500
@Tradex_Global
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