Goldman Sachs improves housing outlook
The report upgraded the industry’s rating from neutral to attractive, according to Bloomberg. Analysts for the company cited more people finding employment, economic recovery and governmental policies making home buying easier as the main reasons for the industry’s comeback.
Goldman Sachs said it predicts that by the end of 2014, the annual rate of new- home sales will be around 700,000. The current rate is about 550,000, according to Bloomberg.
“The super cyclical housing market has turned and a strong recovery in new-home sales is ahead,” the company said in a release “Over the last year a number of risks to the housing market have abated, giving us confidence that rising home prices will drive a three- to seven-year up-cycle in the U.S. market.”