Kevin Spires, CFA, FRM
The US Housing Market has put on an impressive run in the past 12 months. Housing Starts are up 21.5% Y/Y, with completions up 5.4%, and homes under construction up 17.0%. New Home sales have risen 26%+ over the past 12 months driving inventories down by 14.5%.
The US Housing Market has put on an impressive run in the past 12 months. Housing Starts are up 21.5% Y/Y, with completions up 5.4%, and homes under construction up 17.0%. New Home sales have risen 26%+ over the past 12 months driving inventories down by 14.5%.
Despite all that wonderful data, the US Housing recovery is still in its infancy. Housing Starts are still 50% below normal levels - implying an additional 100% growth in starts over the new few years.
Continued strong growth in the near term is expect as the NAHB/Wells Fargo Housing Market Indicator (HMI) has accelerated higher over the past 3 months. Housing Starts, which lag the HMI by 2-4 months, should further accelerate in the next 1-2 months as well.
Continued strong growth in the near term is expect as the NAHB/Wells Fargo Housing Market Indicator (HMI) has accelerated higher over the past 3 months. Housing Starts, which lag the HMI by 2-4 months, should further accelerate in the next 1-2 months as well.
With the increased activity levels, Home Prices look to have bottomed as well. Further sentiment increases as measured by the HMI could lead to some modest increases in Home Prices after a brutal 6 year decline.
All this impressive data has led to strong performance by Housing Sector stocks. XHB, a Housing Sector ETF is up 30%+ relative to the S&P 500 and up an impressive 65% over the past twelve months.
Click on our Monthly Housing Sector Chart Package for more data...
All this impressive data has led to strong performance by Housing Sector stocks. XHB, a Housing Sector ETF is up 30%+ relative to the S&P 500 and up an impressive 65% over the past twelve months.
Click on our Monthly Housing Sector Chart Package for more data...
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