On the heels of the DNC's Hillary Clinton presidential nominee convention held last week in Philadelphia that also promoted a healthy U.S. economy - the federal Government's own economic data released last Friday stating that the U.S. GDP is now at an annualized 1.2 percent growth rate -- paints a very different story that is negatively impacting the U.S. housing sector.
According to the National Association of Realtors chief economist Lawrence Yun, "GDP growth in the second quarter shows the economy barely above water. It marks the third consecutive quarter of near 1 percent growth as opposed to the historical long-term average of 3 percent. Consumers did their job by spending robustly, which should partly be attributed to the $2 trillion in housing wealth accumulation in the past year."
Yun continues, "However, residential construction fell due to weaker single-family housing starts in the second quarter versus the first quarter. Businesses, meanwhile, are on strike as they cut back spending. Going forward, GDP should avoid recession for the simple reason that more new homes need to be constructed. America is experiencing a housing shortage crisis. More homes need to be built and that in turn will lead to faster economic growth."