June 12, Morgan Stanley, said, Housing has Wall Street Psyched About the Economy. It is positioned as the economic engine that will boost the economy in Q3 & Q4. Bolstered by higher than expected new jobs growth, Jonathan Smoke NAR said we are beginning to see the return of first time home buyers.
- Existing home sales are 6.6% higher for the first three months of 2015 than the Q1 2014. All regions of the country have grown.
- New home sales have outpaced growth over the past two years. Also, they are well below their average levels as the housing bubble formed in the years leading up to 2007.
- Home prices have risen in the first half of the year. Morgan Stanley estimates growth of 4.1% – 6.8%.
- Starts and permits are slightly higher for Q2, compared to 2014 Q2 (+3.9%). And the index of building permits, a combination of new construction and renovations permits, is up 8%.