One Barclays analyst thinks that even saying that the housing market is growing ‘slow, but steady’ is being ‘perilously Pollyannaish.’
The comeback of the US housing market has been one of the most bullish themes of the post-financial-crisis era. And for the bulls, it continues to be a bright spot in an otherwise slowing US economy in a slowing global economy.
But in a chilling 88-page industry note, Barclays analyst Stephen Kim warns that the bullish tale spun by his peers is more of a fairy tale. “At this point, it has become hard to overlook housing’s dismally slow pace of recovery,” Kim wrote.
The housing market could have a lot more runway to go and could potentially accelerate if the rest of the economy can see a marginal uptick.