Housing market activity in the US and Canada has risen this month, despite the federal government’s recent moves to cut interest rates and rein in mortgage rates, data from real estate firm Movoto Real Estate has revealed.
Movoto’s October real estate price index rose to 7,814.9, a rise of 7.1% from a year earlier, the real estate group’s president and CEO, Paul Lasky, said on Tuesday.
The index includes prices for single-family homes, condos, and townhouses.
The index is used by real estate brokers to track the growth of a given market.
While housing prices have climbed, they have risen in a way that is likely to remain low until a return to normalcy, Mr Laskyd said.
“We are not seeing the sort of housing market that would allow us to have a significant appreciation in price,” Mr Lasking said.
“That’s the kind of economy that the Federal Reserve has been trying to stimulate for a while now, so that’s the market we’ve seen.”
The housing market is expected to bounce back in the months ahead, with home prices expected to return to their long-term average of about $150,000, Mr Pecora said.
While the Federal government has cut interest rate and mortgage rates since June, Mr Trump has not yet moved to impose new measures.
Mr Trump’s economic policies have caused some property developers to abandon projects in favour of building bigger homes, with many buyers opting for cheaper, cheaper apartments instead.
However, Mr Sacks said the recent actions of the Federal Government would not have a material effect on the market.
“I think the Fed would have to do something about that,” Mr Sack said.
Topics:housing-industry,business-economics-and-finance,home-and.careers,real-estate,federal-government,national-security,foreign-affairs,government-and/or-politics,us-elections,government—politics,united-statesFirst posted October 16, 2019 16:16:24Contact Lisa McGehee