Wednesday, November 29, 2017 9:24 AM EDT
Sales of new single-family homes surprised economists in October to the upside. Sales rose last month hitting their highest level in 10 years amid robust demand across the country. The Commerce Department said new home sales increased by 6.2 percent to a seasonally adjusted annual rate of 685,000 units. That was the highest level since October 2007 and followed September's strong 645,000 units. It was the third straight month of rising new home sales growth showing the strength underpinning the US economy.
The housing market has been strong for much of this year, amid shortages of homes available for sale, skilled labor and suitable land for building. Furthermore, even though the new home sales are at 10 year highs, they are no where near the bubble highs where new home sales were close to 1.4 million in July 2005. This isn't a repeat of the last cycle as we don't see the craziness of subprime and house flipping that was the norm. Banks have been much more cautious in their lending and that should be viewed as positive. As long as long term interest rates stay low, real estate prices should continue to march higher.
(Click on image to enlarge)
Disclosure: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no ...
more
Disclosure: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Runnymede Capital Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Runnymede Capital Management, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Runnymede Capital Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of Runnymede Capital Management, Inc.’s current written disclosure statement discussing our advisory services and fees is available for review upon request.
less
How did you like this article? Let us know so we can better customize your reading experience.