Housing Surprises Again: More to Come or Last Gasp?
- By John Tierney
- 2 min read
Summary
- Pending home sales popped a nice 0.7% in May, following a 10% surge in new home sales. Both were expected to drop noticeably.
- Consumers may be jumping before rates move higher – but this surge is as much about ongoing tight supply of housing in the US.
Market Implications
- Conventional wisdom expects housing to crash in light of higher rates and the prospect of a recession.
- But this is not the late 1980s or 2008 when housing supply far exceeded organic demand. Housing is unlikely to be the economic deadweight it was then.
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