-
-
-
CIO Insights are written by Angeles' CIO Michael Rosen
Michael has more than 35 years experience as an institutional portfolio manager, investment strategist, trader and academic.
RSS: CIO Blog | All Media
Housing Has Legs
Published: 05-24-2016Surprisingly strong housing numbers out this morning: new single-family homes rose 16.6% in April to an annual pace of 616,000 (see chart below), well above expectations, and up 23.8% over the past year. Supply of new homes fell to just 4.7 months, all due to faster sales (inventories were flat). Sales are up strongly in the Northeast, solidly in the South and West, although down in the Midwest. The median ($321,100) and average ($379,800) prices jumped 9.7% and 13.5%, respectively, the last year.
There is more to come. The graph below shows the data from 1963. We may never reach the 2005 peak of 1.328 million (or, maybe we will), but housing will continue to strengthen because job growth and wages are rising, and home ownership is still low. Housing has legs.
Related Articles
-
13 Aug, 2024
Beach Reading
Six new books for you, all fiction, all great. I hope you enjoy!The Sellout, Paul BeattyThis is possibly the most ...
-
16 Dec, 2014
Energy Panic
Take a look at the price of a barrel of good ol' West Texas Intermediate (see graph below). Two things jump out at ...
-
3 Jan, 2018
Updating the Triangle
Last year, I introduced my big picture framework of assessing the relative attractiveness of markets Inside the Triangle ...