Housing starts rise, led by single-family detached home builds.
Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.
Home resales slumped in the United States in late summer while new home starts saw a revival in August, two new reports from TD have found.
At the same time, inventory grew less than one per cent from July in August, and up nearly 23 per cent from a year earlier.
All told, supply in the U.S. resale real estate market grew to nearly four months, up three months one year ago.
The activity could be pared back in September, the report noted, given homebuilder “sentiment remained subdued.”
Yet the prospect of lower borrowing costs for mortgages as the Federal Reserve announced a 50-basis point cut to its interest rate — with more expected — buoyed expectations for sales.
Similarly, the report on resales suggests that higher inventories with decreased mortgage rates in the coming months will provide a backdrop “to help unlock more sales activity in the coming months.”
Still, TD Economics added that a cooling job market could pose a headwind for home sales growth, leading to a prediction that, in the near-term, sales may be sluggish.