By Angela Morris
Activity in the housing sector is a strong point in the nation's economic recovery from the COVID-19 pandemic, according to a new report.
Sales of existing and new homes increased significantly in June, and data points to stable demand for housing, according to a report by Bank of America Securities' US Economists Stephen Juneau and Michelle Meyer.
“However, further improvement may be difficult to come by as some of the sharp recovery likely partly reflects a pull forward in activity and pent-up demand,” said the report.
But demand for housing is the high point in the economic recovery. Other signs are bad.
“Simply put, as news on the virus worsens, consumers limit economic activity, which leads to a drop in new virus cases,” wrote report author Meyer in an article. “That prompts activity to increase again, which leads to an increase in virus cases and the loop starting again.”0
Economic activity stalled in June and July as cases of the coronavirus spiked in the South and West, which decreased consumers' mobility and cut visits to stores and workplaces, the report said. But now the spread of the virus seems to have hit a plateau, since cases in major hotspots of Texas, Florida and Arizona have declined. Other states are starting to flare up, though. Deaths are also edging higher. Read more.