U.S. Housing Data Gains Momentum

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July 24 (Bloomberg) -- Bloomberg’s Drew Reading reports on U.S. housing on “In The Loop.”(Source: Bloomberg)

Eight-month high.

How would you categorize this?

Recovering.

Really?

We had a spike in interest rate last may and weather impact earlier this year.

That has slowed down activity in the market, but we are starting to see things pick back up.

But the stars on the permits were worrisome.

That is where you will see the growth.

What happened?

Housing starts and permits are a measure of supply.

Builders are faced with challenges -- limited with the amount of lots they can build and they are also facing labor shortages in some markets.

You have to take government that with a grain of salt.

Most of the decline was in the southern region.

It might be an anomaly.

Building data has been relatively strong in the south, single-family up for the month.

Who are the buyers?

First home buyers, second-home buyers, investors, or does it matter?

The majority of the buyers in the existing home market are in the move-up segment and we have seen that for a couple of years.

Coming out of the recovery, builders deemphasize the reliance on the first time home builder -- buyer because the demand was not there.

They are focused on the move-up homebuyer.

First time homebuilders were up 20% in june.

-- 28 percent in june.

We are expecting to get a decline.

What was that about?

We're talking about a 5% decline month over month.

We are coming off of last month's spike, so i am not surprised if we have a decline.

Typically demand slows down in the summer season.

How affordable is it to buy a house?

You have to look at the markets.

In some markets, owning a home is cheaper than it is to rent.

That will help the homeowning equation.

When you look at northern and southern california, ownership is very expensive.

Some part of that, it seems, would be distressed sales, and that accounts for 11% of the market.

Paris recession we were talking about 2%. -- three -- pre-recession, we were talking 2%. there are fewer distressed properties.

Investors have taken their foot off the gas pedal a little bit.

Are you a homeowner?

I am.

Me, too, but i am afraid of

This text has been automatically generated. It may not be 100% accurate.

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