Forex: Certain US States undervalued – Capital Economics

By
A A A
Share |

FXstreet.com (Barcelona) - Two distinct groups of US States are experiencing the strongest housing market recoveries: those with decent economic fundamentals, and those previously hard-hit States that are benefitting from robust levels of investor demand.

According to Ed Stansfield at Capital Economics, "Homebuilding activity has been strongest in States with the soundest economic fundamentals - admittedly, in the second quarter, building permits per 1,000 people were above long-run average levels in just three States; North and South Dakota and D.C."

Housing in these States is among the most undervalued in the US and this is attracting investors, who are taking advantage of the opportunity to rent homes to households who have either been ejected from homeownership, or who have been forced to delay buying their own home. "With the supply of homes for sale also falling fast in many of these States, there seems to be considerable scope for house prices to rise further." Stansfield predicts.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

Referenced Stocks:

FXstreet.com

FXstreet.com

More from FXstreet.com:

Related Videos

Stocks

Referenced

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM