The U.S. housing sector recovery that started in 2009 looks sturdy even after nine years. Single-family housing starts were an annualized 877,000 in January, less than half of 1.8 million recorded in early 2006, according to an article published on barrons.com.
Last month, existing home sales were hurt by a continued shortage of houses that is pushing up prices and discouraging first-time buyers. Yet several market watchers including the chief economist at Moody’s Analytics still have faith in the housing sector.
Notably, U.S. existing home sales marked the biggest year-on-year decline in more than three years in January. First-time buyers made up 29% of transactions in January, down from 32% in December and 33% a year ago. As per economists and realtors, a 40% share of first-time buyers is required for a healthy housing market.
Whatever the case, below we highlight a few factors that could cause a revival in the sector and prices of the concerned stocks.