Despite a laundry list of factors that are behind a sluggish housing market, according to an article in MarketWatch, investors remain optimistic on the housing market for three reasons.
1. Nowhere to go but up
“To see a housing-market collapse from this level would be exceptional given what’s happening in the rest of the economy,” Michael Shaoul, chief executive of Marketfield Asset Management, a major shareholder of Lennar, said. “The housing market has tried everybody’s patience, but it’s much more likely that the recovery extends.”
2. Labor market is picking up steam
“If job growth continues, and unemployment goes down, more people will be in a position to purchase a first home,” said Joe Fath, portfolio manager of T. Rowe Price’s Growth Stock Fund.
3. Households can manage more debt
“Household debt has decreased. Balance sheets on the consumer side are healthier today than they were” several years ago, Sandy Sanders, a Manulife portfolio manager.
