Housing still strong
Scott Grannis, Economist at Western Asset Management...
"Housing starts exceeded expectations by 7% last month, as the hurricanes affected only a small part of the huge U.S. economy, and the fundamentals (low taxes, low interest rates, strong income growth, healthy economic growth, demographics) remained favorable.
"As the chart shows, the housing construction sector has been in a bull market since 1991. It indeed appears to be the case that the business cycle is much more benign than it used to be. And despite the fact that the population has grown some 50% over the period represented in this chart, the level of housing starts today is still lower than it was in the early 1970s. No sign yet of any popping of the so-called housing bubble."
"Housing starts exceeded expectations by 7% last month, as the hurricanes affected only a small part of the huge U.S. economy, and the fundamentals (low taxes, low interest rates, strong income growth, healthy economic growth, demographics) remained favorable.
"As the chart shows, the housing construction sector has been in a bull market since 1991. It indeed appears to be the case that the business cycle is much more benign than it used to be. And despite the fact that the population has grown some 50% over the period represented in this chart, the level of housing starts today is still lower than it was in the early 1970s. No sign yet of any popping of the so-called housing bubble."
posted by David M Gordon | 10:59 AM
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