US housing market optimism slides
ILA International is a leading international financial advisory company headquartered in Hong Kong.
[ClickPress, Wed Oct 09 2019] The U.S housing market optimism may have reached its peak, after hitting record highs in August, according to consumer sentiment measurement.
The Fannie Mae Home Purchase index saw a decline of 2.3 points this month after hitting new peaks in months previous. This new decline has been the largest percentage point decrease since the end of the financial year 2018. 2019 has been a great year for the housing sentiment, seeing steep rises in the first eight months of 2019 however the lower optimism may be reflective of anxiety surrounding the national housing economy after the yield curve inverted. This coupled with weak services data, and a less than attractive jobs report which showed that hiring had slowed in September.
Doug Duncan, chief economist at Fannie Mae recently released a statement in which he explained “Consumer sentiment remains relatively strong overall, though uncertainty about the economy and individual financial circumstances appear to be weighing on housing market attitudes a bit more than a month ago.” The latest national Housing survey conducted by Fannie Mae, showed signs that half of American’s said the economy is on the right track to enter the housing market, however 40% disagreed, and believes that the housing market is not the right move with the current uncertainty.
With the preference of those surveyed leaning towards selling, less American’s believe that house prices would see any significant rise in the next 12 months. Of those surveyed only 29% of respondents firmly believed that home prices would see significant moves upwards in the next year. July of 2019 saw the home price growth index unchanged, after a fifteen month slowdown.
ILA International has been offering financial management and stock brokering services to an international array of clients since 2008. Our team of industry experts is comprised of financial analysts, researchers and brokers who share a collective experience of over a century. Our goal is to provide actionable information that leads to safe investment opportunities.
Biyu Changying – ILA International