Analysts: 2014 could be good year for builders, housing market
Posted on Thursday, January 2, 2014 at 10:13:54 AM
Buyers interested in residential financing may have plenty of new homes to look at in 2014, as the new year is shaping up to be an exciting one for the housing market.
In an article for Barron's, analysts at Sterne, Agee & Leach wrote that 2014 will be a positive year, thanks in part to housing starts and turnover. In addition to these elements, better job growth and a stronger economy are more reasons to be optimistic heading into the new year. What's more, a smaller inventory of homes for sale will increase the demand for builders, leading to a more profitable 2014.
The housing analysts at Sterne Agee also believe that an increased availability of residential financing will help the segment along. This could lead to an increased number of buyers in the market and added financial growth across the board.
In addition, the U.S. Census Bureau reported that November construction spending was up compared to the previous month. In total, private construction spending increased to a seasonally adjusted annual rate of $659.4 billion, up 2.2 percent from October's figure. Residential construction spending in particular ticked up 1.9 percent from month-to-month.