Rising sales lead to tighter U.S. housing market

Rising sales and a limited number of existing homes entering the U.S. market have led to extremely tight market conditions and rising home prices, according to a client note from Capital Economics. Existing hme sales are up 16% since the beginning of the year, and housing starts have risen 10% in the same period, according to Capital Economics property economist Matthew Pointon. “Second quarter GDP growth turned out to be much stronger than originally estimated, with an upwards revision from 2.3% to 3.7% annualized,” he said. “The reading of 0.6% in the first quarter therefore looks increasingly like a weather-related blip. With the economy gaining momentum, growth should be a respectable 2.5% in the third quarter.” mpamag.com

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