Housing Market Has No Shortage of Analysis
Brokerage firm Sterne Agee greeted 2014 with optimism about a housing market recovery. HousingWire reports that analysts there believe demand will increase as a result of economic growth and greater credit availability. The firm places next quarter’s growth lower than other estimates, 8.5 percent versus 11.3 percent, but is more optimistic for the entire year.
“For the full-year 2014, our average order growth estimate of 16.4% is almost 230 basis points above the consensus forecast since we expect financing availability to grow through the year and create demand,” Jay McCanless, one of the firm’s analysts, said.
“We see 2014 as a positive year for housing starts and housing turnover with a caveat that the timing of certain financing catalysts is uncertain,” McCanless continued. ”We believe the notion of continued job growth, the real lack of housing inventory, and an improving economy as measured by GDP and the index of leading economic indicators are reasons to invest in the homebuilders.”
Sterne Agee is looking forward, but current numbers are what National Association of Realtors chief economist Lawrence Yun described as a “soft note” finish for 2014. In another National Association of Realtors release, Yun discussed what was happening in the current housing market.
“Home sales are hurt by higher mortgage interest rates, constrained inventory and continuing tight credit,” Yun said. He added there will eventually be a “burst” in the “pent-up demand,” but, as of right now, “rents are rising at the fastest pace in five years, while annual home prices are rising at the highest rate in eight years.”