Tag Archives | US housing

US housing markets will never be the same again

US housing markets will never be the same again.  That’s the conclusion of a new analysis by the blog for ICB. The picture above of a typical US family from the BabyBoom days tells the story: The number of US babies born between 1946 – 64 increased by 50% versus the previous 18 years 4 million […]

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“None so blind, as those that will not see?”

Every now and then, the blog scratches its head and wonders, “what would it take to convince US policymakers that demographics have an influence on demand?” Suppose, for example, they loudly and consistently announced that the US was now in full recovery mode, and would be certain to achieve economic growth of 3% or more?  And that then, growth […]

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US housing starts rise as investors buy into rental sector

US housing markets have been a disaster for many homeowners. Overall, they have lost $6tn since the collapse began in 2006. Nationally, prices are still down 32% versus their peak, according to the Case Shiller Index. Temporarily, however, the market is continuing to stabilise. Banks have slowed the rate of foreclosure, and are wary of […]

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US home prices slip as foreclosures increase

Since 2007, every spring sees a rush of forecasters to claim that – finally – the US housing market has hit bottom. Sadly, for those trapped in foreclosure, and for those in the chemical industry who depend on housing sales, there is little real evidence today for such optimism. Housing also provides a good example […]

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US housing in double-dip as BabyBoomers age

US house prices fell 4.2% in Q1, and have entered ‘double-dip’ territory, having fallen below March 2009 levels, according to the S&P Case-Shiller Index. They are now back to mid-2002 levels. Further falls are more or less inevitable. S&P suggest the ‘shadow inventory’ of homes is now 52 months at current sales rates, up from […]

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The end of the US housing dream

Most economists still expect a major recovery in US housing markets. This would be very welcome for chemical companies, as housing represented a $35bn market as recently as 2006, when 2.2m new homes were built. But the above chart suggests they may be over-optimistic. It comes from Yale’s Prof Robert Shiller, who co-founded the authoritative […]

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US heads towards New Normal for housing markets

Major changes are underway in Western housing markets. They are generational in nature, meaning that we are starting to see a New Normal develop in terms of future demand patterns for chemicals and polymers. The past 30 years have seen Western leaders committed to the concept of a ‘property-owning democracy’. Both US President Reagan and […]

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US consumer demand growth stalls

The American Chemistry Council has recently updated its invaluable work on US polymer chain inventories. Last December this led the blog to conclude that we would see “a strong H1“, as inventories were low, whilst demand was likely to rise supported by seasonal and stimulus factors. But the ACC’s latest analysis (above) leads to a […]

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US housing remains weak as foreclosures rise

The problems in US housing remain a major cause of concern for global chemical markets. As the above chart shows – from the American Chemistry Council (ACC) weekly report – housing starts (blue line) and building permits (red) are still at very low levels. April’s housing starts were up 41% versus 2009 to 672k. And […]

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US housing a long way from full recovery

US housing used to be a $35bn chemicals market, with 2.2m housing starts in 2006, each with a $16.7k chemicals value. Last year, total housing starts were just 550k, for a value of only $9bn. And as the chart above shows, from the American Chemistry Council, the annualised rate (blue line) was just 575k in […]

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