The latest U.S. housing figures are casting further doubts on the robustness of the latest housing recovery, just as the Federal Reserve attempts to guide markets on the timeline for raising interest rates. New home sales released yesterday managed to beat expectations modestly month over month but fell marginally below the prior month’s figures. However, when coupled with the drop in median prices and tumbling existing home sales, the outlook looks more fragile. Remarks from the parent company of the S&P Case-Shiller Home Price Index confirmed this fear, noting that “the housing recovery is faltering.” Sales figures are still well below peaks reached in 2005 and these comments come even as prices gained moderately despite falling the previous 3 reporting periods.
American Housing Rebound Faltering
Daily Analysis - 26/02/2015