US housing sector: Scope for further recovery – Societe Generale

FXStreet (Delhi) – Economists at Societe Generale, see room for further recovery in US housing sector and lists down the factors they think are responsible for that.

Key Quotes

• “First, credit conditions remain easy compared to the long term average.

• Second, the recovery in US household incomes, underpinned by job creation, creates the confidence required to set up independent households. The latter should support US housing demand, but via rental markets.

• Third, years of under-building have wiped out past excesses and even created a deficit in supply.

• Combined, these factors bode well for housing and our economists expect a pick-up in residential investment.”