- Housing starts, positive homebuilders and a pickup in Chinese building all create a good feeling about the economy and markets.
- Average house prices have increased but median prices show that the current situation is not even close to a bubble.
- Rent prices are rising and therefore more buying is expected as people switch to buying instead of renting.
Recent news about housing is positive. On Monday, the National Association of Home Builders reported the housing market index at 58 where a reading above 50 means that home builders have a positive feeling about the single-family housing market. Two days earlier, on Saturday, the Chinese National Bureau of Statistics reported that property investments in the first four months of 2016 rose 7.2% and construction starts gained 21.4%. And on Tuesday new housing starts came in at 1.17 million or 6.6% higher than in March. All of this is very positive news but the most important thing for investors is how this affects the economy and markets. As housing ignited the great recession, it is important to constantly be aware of what is going on in the housing market. More →