Wednesday, 1 Jul 2015 | 10:46 AM ET
The lasting legacy of the US housing crash has ranked at the top of the
so-called "headwinds" that Federal Reserve policy makers such as Janet
Yellen cite when discussing America's economic prospects.
A host of indicators are suggesting now that, even if the property
market remains well below its boom-time highs, it is firmly in recovery
The Case-Shiller index of home values in 20 cities rose 4.9 per cent
from a year earlier in April, according to data released Tuesday, with
values in Denver and San Francisco rising around 10 per cent from a
year earlier. That came after the National Association of Realtors
index of pending home sales hit its highest level since April 2006.
The problem with the recovery is that it is, in the words of Sam
Khater, deputy chief economist at CoreLogic, a lopsided one.
An acute lack of construction at the lower end of the market is
creating a tight supply of housing, driving up rents and pushing up
prices of affordable homes to levels reached in 2006.
With access to credit far more constricted than it was before the
financial crisis and income growth depressed, home ownership rates have
fallen to 20-year lows, as many younger Americans are locked out of
property ownership. Read More