Analysts: Mixed signals coming from housing market
Posted on Wednesday, November 5, 2014 at 9:00:23 AM
The middle of 2014 wasn't great for the U.S. housing market. While a number of positive conditions emerged for buyers and sellers - such as low residential financing rates - there were other trends that indicate the recovery isn't flourishing.
In a client note, experts at Capital Economics explained that these mixed signals make it difficult to put the hardships of this segment behind us at this time. While home prices are increasing, rates of appreciation are down and demand for mortgages is slower.
"The headline CoreLogic house price index fell by 0.1 percent m/m in September," Paul Diggle, property economist for Capital Economics, said in the client note, HousingWire reported. "But house prices tend to be weaker at this time of year, and our own seasonal adjustment of the headline numbers points to a 0.6 percent m/m increase in underlying house prices."
In a note to its clients, Sterne Agee analysts explained conditions in local markets are stronger at the moment than the national housing segment, according to HousingWire. Growth of completed and pending home sales was higher in the top 25 markets in the U.S. than the national numbers as a whole.
Overall, homebuyers and sellers can find opportunities, but it may be a bit longer before the entire country has a strong housing market once again.