Homebuilder Spring Selling Season Off To Solid Start

March 13, 2012

in News

Homebuilder Spring Selling Season Off To Solid Start

The homebuilder spring selling season just started, but reports from the field confirm that sales activity in communities are materializing in a way not seen in years, Barclays Capital said. “We believe the spring selling season has arrived strongly enough to kick-start a positive feedback loop in housing for the first time since 2005,” BarCap analysts said after discussions with executives of some of the largest companies in the industry. Barclays analysts expect 1 million housing starts by 2013 and a return to the historical norm of 1.7 million by 2015, while predicting that prices will rise 1% to 3% annually during that period. On a seasonally adjusted basis, starts increased to 699,000 in January, up from 636,000 a year earlier and 689,000 in December. Barclays estimates that every 100,000 housing starts generate almost 250,000 jobs. “As such, we expect U.S. residential housing to transition from being a headwind to a tailwind for the economy by this time next year,” they say. [Read this article]

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