Despite the pandemic holding down the rest of the economy, the U.S. new home market is a bright spot, showing an abundance of resiliency.
According to an article from financial information service Seeking Alpha, the market cap of all new homes sold in the U.S. has fluctuated between $21.3 billion and $21.5 billion. In December of last year, the market cap peaked at $21.7 billion.
To the market’s surprise, this is the complete opposite of what happened at the beginning of the 2005-2006 collapse of the housing market.
Additionally, economists that were polled by Reuters had forecasted new home sales rising in May and account for about 14.7% of housing market sales overall.
This is a great sign in what seems like a sludgy economic market. The housing market seems to be a sustained positive note and this info is only more reason to believe that housing will lead an economic recovery.