Union International: US home resales dropped to 6 month lows highlighting the fragile nature of the housing market recovery.
According to Union International, sales of existing homes in the US unexpectedly fell by 6.1% to a yearly rate of 4.93 million in November highlighting the precarious and uncertain nature of the country’s real estate market. After mounting an encouraging uptick in the first half of 2013, the recovery stalled as mortgage rates rose steadily in the 2nd half.
The latest data comes following two months of relatively strong numbers but the National Association of Realtors, somewhat predictably suggested the surprise decline did not herald the start of a steady weakening in the real estate market.
Solomon Roth, chief economist at Union International disagreed; “The truth of the matter is that although the unemployment rate in the US has drifted lower, the jobs people are getting are low wage, part-time or temporary service sector positions. They don’t pay the kind of money that’s going to enable people to get a mortgage and buy a home. Wall Street couldn’t be any further removed from Main Street right now.”
Union International says it expects the real estate market to deteriorate in 2015 as the US Federal Reserve continues to bluff investors that it will raise interest rates in the 2nd half of the year. The firm maintains its view that the US economy is unable to maintain the illusion of a recovery without the quantitative easing support which the Fed withdrew earlier this year.
“Far from raising interest rates, we believe the Federal Reserve will re-introduce QE or some variation on it as it becomes harder to ignore the worsening economic data,” explained Roth.
About Union International:
Union International is a full service brokerage firm based in Union International Our Private Client department primarily works with individuals and families with a net worth of $1 million and above who engage us to provide a comprehensive brokerage and wealth management service.
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Contact Union International:
Shin Osaka Prime Tower, Floor 12
6-1-1 Nishi-Nakajima, saka
Osaka-fu, Japan
http://www.unioninternational.com
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+81645604063