Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

US upbeat about recovery

By Staff Reporter
20 August 2009 | 1 minute read

Economists now believe that the US housing market is poised for recovery.

Advertisement
Advertisement

Single family housing starts rose 1.7 per cent in July, the US census Bureau reported yesterday, a positive sign that overflowing home inventories are dropping and demand for new homes is picking up.

According to a report in the Australian Financial Review, JP Morgan Chase economist Abiel Reinhart said the company’s forecast that residential investment would rise at an annual pace of 10 per cent in the quarter may turn out to be too low, given single family starts appear to be rising at a sharp pace on an annualised basis.

Economists are confident that residential investment will contribute to economic growth this quarter for the first time in more than three years.

Over the past year, the US government has tried to stimulate first home buyers, mitigate foreclosures and encourage banks to modify loans, while some state governments have placed moratoria on foreclosures.

The US Federal Reserve has cut interest rates to nearly zero and purchased government bonds and mortgage securities in an effort to bring down interest rates as low as possible, however until now, it only had limited signs of success.

US upbeat about recovery
default
lawyersweekly logo

Tags:

Listen to other installment of the Real Estate Business Podcast

 

Do you have an industry update?

top suburbs

12 month growth
Queenton
69.76%
Flying Fish Point
69.61%
Point Piper
69.17%
Glenelg South
69.02%
Pretty Beach
69.01%
Bar Beach
68.9%
Northampton
68.7%
Kembla Grange
66.91%
Gnarabup
66.67%
Boomerang Beach
66.67%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.