Goldman Has A 'Long List Of Positives' For The Housing Market

sprawl suburbs scottsdale housing houses

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In a new research report, Goldman Sachs’ analysts Joshua Pollard and Anto Savarirajan call for a strong recovery in the housing market.”The super cyclical housing market has turned and a strong recovery in new-home sales is ahead driven by ‘Housing’s Long List of Positives’. Over the last year a number of risks to the housing market have abated, giving us confidence that rising home prices will drive a 3-7 year up-cycle in the US housing market.”

Here are the key points from Goldman’s list of housing positives.

  1. Renewed home price appreciation, which drives Goldman’s forecast for “20-30 per cent compound annual growth in new home sales and housing starts over the next four years.”
  2. 2011-1H12 job growth supports 200,000 more new home sales without further job adds
  3. Shadow supply has declined significantly, lowering the risk of another price shock
  4. Housing policy has been supportive since August 2011 and should remain so

Along with the expected recovery in housing, Goldman listed a number of stocks in which it likes, including PulteGroup (price target of $15), Toll Brothers (price target of $48), and M.D.C. Holdings (price target of $58).

Here’s What Goldman Thinks Will Happen To The Country’s Biggest Housing Markets For The Next Two Years >


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