James Hardesty, market strategist and chief economist at Hardesty Capital Management, told CNBC’s “Morning Call” that the housing market may be bottoming out.
“I think we have a whiff of good news in the housing numbers,” Hardesty said. “I think also (the fact) that interest rates are strengthening here is suggesting that the economy is strengthening, which means that personal incomes and the housing affordability capability of the consumer is moving up. I think we’re seeing a bottoming here.”
The National Association of Realtors said sales of existing houses in the U.S. fell in April to the lowest level in about four years. Purchases fell 2.6% to an annual rate of 5.99 million in April from 6.15 million in March.
On Thursday, the Commerce Department reported that new home sales in the U.S. grew in April by the largest amount in 14 years, jumping 16% nationwide.
“The central issue I see with housing is the well-being of the consumer, the capacity of the U.S. consumer to continue to spend,” said Vinny Catalano, chief investment strategist at Blue Marble Research. “This is tied to the whole issue of globalization –- whether or not in a U.S. slowdown the world economy can continue to grow. The jury is out. I lean to U.S. consumers slowing more than expected.”