Morning Report Wednesday 30 July 2014
US Housing is coming off the boil - Are opportunities presenting themselves?
This week, US Pending home sales fell 1.1% for June to mark the first decline in four months, confirming the US housing recovery remains choppy despite a retreat in interest rates. Compared to a year ago, pending-home sales were down 7.3 per cent last month. These numbers suggest many Americans remain unwilling or unable to enter the housing market despite historically low borrowing costs and a pickup in job creation. Lenders are still imposing strict lending standards, and home prices have risen sharply over the past two years. Meanwhile, Americans' incomes are growing tepidly. What a fascinating scenario compared to Australia, where housing continues boom in an economy way behind that of the US.
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