Housing Takes the Lead!!
With the Spring season of Home Sales happening, it may not be a historically unheard of statement: Housing is the strongest economic engine in the past quarter.
Yet it has been a few quarters since anyone trumpeted this statement for almost any quarter. I know, between my own observations and data from other sources, that I have been sharing the overall strength in the housing sector.
Yes, not every one has yet to see the double digit annual increase seen in Florida, California and Nevada(which is slowing by the way). Still, increasing values have been the rule to the land for the past 12-24 months in most corners of the country.
In Jim Belote's MMG Weekly, the strength of the Housing sector is compared to the weakness in consumer spending in the 1st quarter. With home sales up and the GDP down, it easy to see why housing lead the economy.
As I always wonder: How come there is so much hand wringing over the sales? With the winter weather we had January - March, retail sales, car sales and home sales were impacted. Every time
we have tough weather, be it snow in the NE or a hurricane in the Gulf, sales are tough in that region. Buying just doesn't interest someone who see a foundation where a his or her home stood.
Loss sales can not ever be made up!!! Been know for years. I know this is why the media outlets and such get "talking heads" complaining about the bad weather impact on sales. But who can dictate the weather???
We simply have to deal with the consequences!!!
As so aptly stated below, with the improved weather(don't ask the Upper Midwest and Plains if weather improved), retail sales and car sales should rebound.
And yes, home sales should increase also! The low mortgage rates seem to be hanging around and can only make buyer and seller motivated to move.
No time like the present!!! No one wants to be caught in the "would have/should have" dilemma.
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