US Housing Market Update Vaccine will not provide a quick fix for real estate News about a vaccine has boosted financial markets and we have revised up our global economic expectations for the next two years or so. But while we think that this bodes well for the medium term... 2nd December 2020 · 3 mins read
US Housing Market Update Strong housing markets give recoveries a helping hand A striking development in the past few months is how well housing markets in developed markets have generally been doing. We expect this to peter out next year, although in most cases house price... 19th November 2020 · 6 mins read
US Housing Market Update Fall in FTB share good news for future rental demand Rising rental vacancy rates in large cities have not been accompanied by a surge in first-time buyers (FTBs). Indeed, 2020 saw the lowest share of FTBs since 1987. That implies many of those rental... 18th November 2020 · 3 mins read
US Housing Market Update Demand for expensive homes surges Wealthy buyers seeking homes during the pandemic have driven the share of existing homes sold for over $500,000 to a record high. A lack of inventory has prevented a similar rise in the new home... 2nd November 2020 · 3 mins read
US Housing Market Update Jump in asking rents points to move away from cities Despite issues with sampling due to COVID-19, the third quarter HVS survey did provide some interesting information on the impact of the virus. A surge in median asking rents was caused by a jump in... 28th October 2020 · 3 mins read
US Housing Market Update Rise in mortgage payments an upside for house prices Despite a surge in mortgage applications, holdings of residential loans by commercial banks declined in August and September. We suspect that divergence is due to a rise in mortgage repayments, which... 22nd October 2020 · 3 mins read
US Housing Market Update Supply of new homes running out Surging demand has led to a sharp drop in the number of new homes for sale, with the fall driven by a collapse in the inventory of completed homes. A jump in single-family building permits will... 30th September 2020 · 3 mins read
US Housing Market Update Purchase demand to support multifamily construction The sharp drop in the rental absorption rate would, other things equal, be expected to weigh on multifamily housing starts. However, the recent shift away from cities will provide an opportunity for... 16th September 2020 · 3 mins read
US Housing Market Update Will the eviction ban boost rent arrears? In contrast to the surge in mortgage forbearance following the CARES Act, we doubt the recently announced eviction ban will trigger a jump in rental arrears. For those who can afford it, deciding not... 4th September 2020 · 3 mins read
US Housing Market Update Inflation target change won’t turbocharge house prices Given interest rates are already very low, we doubt any additional stimulus introduced because of the change to the inflation target will provide a significant boost to the economy or house prices... 27th August 2020 · 3 mins read
US Housing Market Update Foreclosure backlog to unwind in final quarter The foreclosure process ground to a halt in the second quarter, as lenders were banned from foreclosing on federally-backed mortgages and the court system largely closed. While we expect most of those... 20th August 2020 · 3 mins read
US Housing Market Update Mortgage credit scores jump, and will stay high The median credit score on mortgages originated in the second quarter surged to a 21-year high, as lenders tightened standards in response to uncertainty over the labour market. While unemployment is... 13th August 2020 · 3 mins read
US Housing Market Update Homeownership has not been given a COVID boost The unprecedented surge in household formation and the homeownership rate in the second quarter is not a sign that Americans are fleeing rental apartments in the city to buy homes in the suburbs... 29th July 2020 · 3 mins read
US Housing Market Update Property after the pandemic Global property markets are expected to see a lasting impact from the effects of the COVID-19 outbreak. Over the coming weeks, we will publish a series of pieces looking at the post-pandemic future... 15th July 2020 · 3 mins read
US Housing Market Update Second wave argues against rapid home sales recovery As COVID infections have surged, the slowdown or reversal of reopening across the South will weigh on home sales. Given sellers and buyers now have more experience in transacting during the pandemic... 14th July 2020 · 3 mins read
US Housing Market Update Larger mortgages won’t necessarily boost price growth The average value of a home purchase mortgage application hit a record high $359,000 at the end of June. But that doesn’t mean house price growth is set to take-off. An increase in the share of new... 6th July 2020 · 3 mins read
