“If the economy can continue to firm and accelerate job growth in the next few months, we think the macro new housing data could finally begin to give more conclusive evidence that housing recovery is gaining steam. This would serve as a long-awaited catalyst to change investor sentiment, which has stubbornly resisted the notion that housing recovery is possible in the near- to medium-term,” the analysts said.
“For the overall U.S. housing market, we believe the first half of 2011 proved to be a disappointment, and we see housing demand remaining tepid in the second half,” S&P added. “We believe the key factors that would drive an improved housing market are an increase in buyers’ confidence with improving job conditions, available mortgage credit from lenders, a better balance of new and existing homes available for sale, and an easing of increased foreclosed properties, which continues to put downward pressure on housing prices.”
SPDR S&P Homebuilders
