Cooling Housing Markets: What Works?

Cooling Housing Markets: What Works?

photo’s by: Andrés Nieto Porras and goisraelgermany  For past few years, macroprudential policy has been the new policy buzzword, and the “go-to” tool for many policymakers around the world. This note describes the experience of Israel and the Netherlands in using of macroprudential policies to deal with house prices, and sheds some light on what works. Israel and […]

US Fed: It Is Not “The When”, It Is How Long It Will Take to Normalize Policy

Key takeaway – On September 16-17, the US Federal Reserve (Fed) will take a difficult decision: to hike rates for the first time in nearly a decade – or wait. It is a close call: US domestic economic conditions could justify tighter policy but remain fragile. While the GDP is growing, inflation is below the […]

Housing: The U.S. Economy’s New Risk Factor

Housing remains a weak spot for the US economy, as suggested in yesterday’snews of a surprisingly large decline in new home sales for June. The report follows last week’s update on new residential construction, which also slumped more than expected last month. On a brighter note, existing home sales, which constitute the lion’s share of transactions for residential […]

Is the Soft Housing Starts Data for June a Warning or a Sign of a Maturing Recovery?

Housing starts were surprisingly weak in June, the Census Bureau reports. The consensus forecast was looking for a modest gain to a 1.026 million annualized rate. Instead, the actual number dipped to 893,000—the lowest since last September. Newly issued permits for housing construction suffered a similar setback. In fact, housing has been a weak spot in the […]

Strategic Briefing: U.S. Existing Home Sales

Existing-Home Sales Heat Up in May, Inventory Levels Continue to Improve National Assoc. of Realtors | June 23 Existing-home sales rose strongly in May and inventory gains continued to help moderate price growth, according to the National Association of Realtors. All four regions of the country experienced sales gains compared to a month earlier…. “Home […]

Monitoring Risk in the Housing Market

Housing is the weak link in an otherwise upbeat trend for the US economy. Deciding if this is a temporary soft patch for real estate or the start of something darker is still a work in progress. The potential for trouble is certainly lurking, as the recent run of weak data in residential sales and construction […]