On Housing, Don't Believe the Doom
Source: “Don’t Believe the Doom on U.S. Housing,” CNBC.com
Non-distressed properties sold by voluntary sellers have started to stabilize. That’s a sign that the worse could be over, Ajay Rajadhyaksha, the co-head of U.S. fixed income strategy at Barclays Capital, said in a research note on Friday.
An increase in voluntary sales over the summer should lead to another change in the mix of homes, in favor of non-distressed sales, and the aggregate index of home prices should stop declining and could even increase.
"In sum, there are many reasons to worry about the U.S. macroeconomic picture (the recent softening in the labor market, the U.S. fiscal picture, etc.) but the recent drop in U.S. home prices should not be one of them," according to Rajadhyaksha.
Source: “Don’t Believe the Doom on U.S. Housing,” CNBC.com, Patrick Allen (June 3, 2011)
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