New Housing Data Reveals Key Indicators at Highest Levels in 8 Years
The market strategists at We Buy Houses® (WeBuyHouses.com) – one of the nation’s largest networks of residential real estate investors – see extremely bullish signals for the U.S. housing market through the next 12 to 18 month cycle. This bodes well for all aspects of the residential housing industry – including builders, brokers/agents, investors, and lenders.
“We look at three key indicators – (1) housing starts, (2) existing home sales, and (3) investments in home renovations – and all three of those indicators are at multi-year highs,” explained Dev Horn, VP of Marketing for We Buy Houses®. “With the announcement of existing home sales today, we’re seeing the strongest housing market since 2007, and we believe this strength will continue well into next year.”
We Buy Houses® CEO Jeremy Brandt added, “We’re extremely encouraged by the positive trends in the real estate market, especially in the south and west where we have a strong presence of local We Buy Houses® offices. The strength of these key indicators is a very positive signal that U.S. residential real estate is one of the most attractive asset classes in the world right now. We’re expecting our business owners – and others involved in residential real estate – to have a very strong tailwind headed into 2016.”
THE “NEW HOUSING STARTS” INDICATOR – HIGHEST LEVEL SINCE 2007
According to the U.S. Department of Commerce, groundbreaking increased 0.2 percent to a seasonally adjusted annual pace of 1.21 million units, the highest level since October 2007. In July, groundbreaking for single-family homes, which accounts for the largest share of the market, surged 12.8 percent to a 782,000 unit pace, the highest level since December 2007. Single-family home building in the South, where most of the home construction takes place, rose to the highest level since January 2008.
THE “EXISTING HOME SALES” INDICATOR – HIGHEST LEVEL SINCE 2007
Per CNBC, “U.S. home resales rose more than expected in July to their highest level since 2007, a sign the U.S. housing market was heating up and could provide more support for the overall economy.”
The National Association of Realtors said on Thursday existing home sales increased 2 percent to an annual rate of 5.59 million units. Sales were up 10.3 percent from a year ago.
THE “HOME DEPOT” INDICATOR – STOCK AT A 5-YEAR HIGH
We Buy Houses analysts also look at the performance of businesses that supply the home renovation market – in particular, Home Depot, which serves a much larger contractor base than Lowe’s.
On Tuesday, Home Depot (HD) reported better-than-expected quarterly same-store sales and raised its full-year sales and profit forecast.
Shares of the world’s largest home improvement retailer are near a 5-year high.
About We Buy Houses® / WeBuyHouses.com
Trusted by more than one million homeowners, We Buy Houses® is the most recognized brand in residential real estate investing. Every month, the company connects thousands of home sellers to local cash buyers via one of the largest networks of real estate investors in North America. To sell a house quickly for cash, or for more information on residential real estate investing, call 1-877-WeBuyHouses (1-877-932-8946) or visit WeBuyHouses.com.