2016 ROI Fourth Quarter Edition with Q & A HIS Capital Group Edition | Page 16

HOUSING APPEARS POISED FOR AN AWESOME YEAR
Lastly, housing. We anticipate 2017 to be a strong year for housing as long as interest rates stay reasonably
low, as the economy re-accelerates after a two-year hiatus of mediocre growth. Perhaps the strongest
foundation for such an outlook is the vacancy rates, which are near their mid-90s lows – suggesting
growth in construction is on the way in.
The supply of homes compared to demand is still relatively low as well, as measured by the Census
Bureau’s monthly supply figure. The figure represents the ratio of houses for sales to houses sold (i.e. one
measure of supply and demand). At 5.3, the recent measurement is higher than the pre-housing boom
measurements, but nowhere near housing bubble-bursting years of 2008 and 2009.

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H IS Capital Group