“The housing market is lagging despite strong consumer demand,” said Alan Detmeister, Senior Economist at UBS in a CNBC interview. While the current trend may not lead to recession, he emphasized the importance of gauging the strength of the overall market in light of the January jobs report.
He pointed out that housing led the last couple of recessions. Speaking of personal income and wages, Detmeister indicated that employment numbers show that part of the economy is doing well, however, there is a noticeable hesitance among consumers to purchase houses.
In this video, Detmeister and John Lynch, Chief Investment strategist at LPL Financial, discuss the cracks in the consumer story as well as the impact of factors such as declining mortgage rates and tax cuts on real estate and overall housing prices. Click here for more.