The Weekly Brief
Global Market Insights Strategy Team
One of the most encouraging aspects of the current economic backdrop is the resilience of the US housing market
Prior to the last recession, the National Association of Home Builders (NAHB) survey provided an early warning sign of the coming collapse in the housing market, which then triggered a financial crisis. This time around, after a sharp decline in activity during lockdown, the rebound has been remarkable. This is good news for the US economy as moving home tends to lead to other spending, such as on furniture and appliances, as well as more construction and housing related services. With permanent unemployment rising, even as temporary unemployment declines, it’s worth monitoring the housing market closely in the coming months. However, at the moment, the data continues to point to a much healthier housing market than during the last recession.
US housing market is standing strong
Index level (LHS); thousands (RHS)