US Property Market Shows Some Strength (?)
According to the media, housing market strength is being driven by job growth, a strengthening economy and low interest rates. The trends in existing home sales, which account for 90% of the market, is also positive. Last July, the annual rate for existing home sales was 5.59 million, the highest since February 2007 (5.79 million ). Also, mortgage loan approval rates were up (71% in July compared to 62% for last July).
One could also argue that job growth is not strong, but unemployment driven by part-time and low wage jobs, and that the stock market strength begin driven by Quantative Easing (endless money printing by the Fed) and low interest rates enabling companies to borrow money to repurchase their stock. Be careful what the "experts" have to say: how many of them forecast-ed the housing crash?
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