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Wednesday, September 25, 2013

Steve Picarillo speaks about the state of the US housing market and the strength of the housing and economic recovery.


"Although the Fed decided to maintain quantitative easing the impact is beginning to wear off", Steve Picarillo stated in today's analyst conference. "My fear is that higher interest rates will prematurely choke off house price appreciation, thereby negatively impacting the strength of the overall US economy."
In a teleconference aimed towards financial analysts and real estate professionals, globally recognized financial analyst shares his observations and opinions of the strength of the US housing market, the housing recovery and the overall impact on the US economy.

New York, Sept. 25, 2013 Globaly reconginized financial analyst Steve Picarillo comments on the current status of the US housing market. 

Not in my backyard- Housing prices rise at a slower rate, especially in New York

According to the latest S&P/Case-Shiller Home Price Index, US house prices rose 12.4% over the 12 months to the end of July. This was the largest annual increase since February 2006. However, the month on month increase slows, evidencing higher interest rates are threatening this fragile recovery.

'"Although the US Federal Reserve decided last week to maintain its efforts to boost the economy, the impact of quantitative easing (QE), which was credited for boosting the housing market last year by driving down mortgage rates to record lows, is beginning to wear off" Steve Picarillo stated.

"Indeed' Steve continued,"the Fed's announcement that QE3 bond buying will continue for now is only having a limited positive impact on housing. To this end, prices rose 0.6%, on a seasonally adjusted basis, in July compared with the month before. This was lower than analysts' forecasts and down from June's increase of 0.9%". Moreover, the increase in mortgage rates that began last May, which negatively impacted mortgage applications, further illustrates the direct correlation between rising interest rates and the strength of the housing market recovery. "My fear is that higher interest rates will prematurely choke off house price appreciation, thereby negatively impacting the strength of the overall US economy. We can’t forget that this jobless recovery is far from strong and steady" Picarillo cautioned.

The housing market recovery remains choppy and uneven. For example, Las Vegas saw the biggest annual increase at 27.5%, while San Francisco, Los Angeles and San Diego all saw rises in excess of 20%. However, the survey points out that house prices in those cities are still well below the peaks hit before the 2008 financial crisis. Of the 20 cities surveyed in the study, New York recorded the lowest annual increase of 3.5%. 

"Given the relationship between consumer confidence and home prices, maintaining positive momentum in the housing recovery is central to the larger economic recovery of the US. We certainly know that job creation is not driving this recovery" Mr. Picarillo concluded.   

Media Contact
Company Name: Creative Advisory Group, Inc.
Contact Person: Steve Picarillo
Email:Send Email
Phone: +1 212 810 2164
Address:132 East 43rd Street, MS 359
City: New York
State: NY
Country: United States
Website: www.stevepicarillo.com
Source: www.abnewswire.com

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