The major Wall Street benchmarks closed on a strong footing last night (February 27th), after official property purchasing data picked up in January.
New home sales in the US – which are a lead component of past recoveries – surged by 16 per cent in January to the highest rate since July 2008.
The S&P/Case-Shiller index of property values advanced by 6.8 per cent from December 2012, which is the biggest year-to-year gain since July 2006, after advancing by 5.4 per cent in November.
Near record-low borrowing costs and gains in employment are fueling demand and driving up the value of properties as the number of houses on the market falls and foreclosures dwindle.
These market improvements are shoring up household net worth and confidence, which may help underpin consumer spending even as a rise in payroll tax chips away at take-home pay.
When the markets finished for the day yesterday, the Dow Jones rose by 0.8 per cent to an index value of 13900.1 points, while the Nasdaq rallied by 0.4 per cent to 3129.6 per cent.
Find out about the Nasdaq and spread betting strategies at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.