Friday, July 31, 2015

Headwinds For The Real Estate Market After August 1st

News
This trend of declining sales and at least stagnant prices should continues as Title XIV of the Dodd-Frank Wall Street Reform - quietly abandoned this spring and Consumer Protection Act makes the progress of getting a mortgage more difficult and, more importantly, even more costly for the public after August 1st. Homebuilding stocks, backed by safe have capital flow from Europe and Asia, could temporarily disconnect from real estate and follow the broader market higher into 2017 (chart 1 and 2).



Chart 1


Chart 2


Headline: New-home sale slump in June nationally

WASHINGTON (AP) -- Fewer Americans bought new homes in June, a possible sign that the real estate market is cooling down after months of hot sales.

The Commerce Department says new-home sales slumped 6.8 percent last month to a seasonally adjusted annual rate of 482,000. The report also revised May sales down to a rate of 517,000 from 546,000.


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