TRADEX
GLOBAL INTERNAL COMMENTARY
Existing home purchases
increased 5.9% to an annual rate of 5.04 million! This is the best number since November of
2009 and was way above most forecasters’ projections of an annual rate of 4.9
million. Property values have risen 10%
over the last 12 months as inventories dropped to the lowest levels in 11
years. These numbers bode very well for
our Liquid Real Estate Portfolio, as the underlying mortgage securities will
benefit from rising home prices and improving severities when a home does need
to be foreclosed upon. Keep nimble –
Michael Beattie
EXTERNAL RESEARCH COMMENTARY
Sales of previously owned homes rose more than forecast in November to reach a three-year high as lower borrowing costs sustained the U.S. housing rebound. Purchases of existing houses increased 5.9 percent to a 5.04 million annual rate, the most since November 2009, the National Association of Realtors reported today in Washington. The median forecast of 82 economists surveyed by Bloomberg projected an increase to a 4.9 million rate. Property values climbed 10.1 percent over the past 12 months as inventories dropped to the lowest level in 11 years. Record-low mortgage rates and an improved job market are boosting sales and cutting inventories, giving the market the opportunity to absorb foreclosures. Prices are rising as a result, which will probably draw more buyers seeking to take advantage of current affordability in housing, helping retailers such as Pier 1 Imports Inc. (PIR) and Lowe’s Cos. Inc. “The housing market is staged for continued improvement,” Anika Khan, senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, before the report. “Underlying fundamentals are continuing to improve despite uncertainty. We’re seeing better labor market numbers, and that’s also reflected in better consumer confidence. Sales activity is going to be volatile but the underlying trend is still improving.” Economists’ estimates in the Bloomberg survey ranged from 4.59 million to 5.15 million. The prior month’s pace was revised to 4.76 million from a previously reported 4.79 million.
Sales of previously owned homes rose more than forecast in November to reach a three-year high as lower borrowing costs sustained the U.S. housing rebound. Purchases of existing houses increased 5.9 percent to a 5.04 million annual rate, the most since November 2009, the National Association of Realtors reported today in Washington. The median forecast of 82 economists surveyed by Bloomberg projected an increase to a 4.9 million rate. Property values climbed 10.1 percent over the past 12 months as inventories dropped to the lowest level in 11 years. Record-low mortgage rates and an improved job market are boosting sales and cutting inventories, giving the market the opportunity to absorb foreclosures. Prices are rising as a result, which will probably draw more buyers seeking to take advantage of current affordability in housing, helping retailers such as Pier 1 Imports Inc. (PIR) and Lowe’s Cos. Inc. “The housing market is staged for continued improvement,” Anika Khan, senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, before the report. “Underlying fundamentals are continuing to improve despite uncertainty. We’re seeing better labor market numbers, and that’s also reflected in better consumer confidence. Sales activity is going to be volatile but the underlying trend is still improving.” Economists’ estimates in the Bloomberg survey ranged from 4.59 million to 5.15 million. The prior month’s pace was revised to 4.76 million from a previously reported 4.79 million.
Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com
203-863-1500
@Tradex_Global
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