CHART OF THE WEEK
The latest US real estate statistics are somewhat weaker. While the increase in residential investment averaged around 7.5% per year between 2011 and 2016, this pace slowed markedly in the Q2 2018 (+1.3%) and the latest building permit figures show a fall in the last month. Price growth slowed in July. Has real estate become too expensive in the United States?
OUR ANALYSIS
The National Association of Realtors index takes into account household incomes, the level of interest rates and real estate prices. The higher it is, the greater households’ ability to buy is. However, this index has now reached its lowest level the since 2008. This said, it remains far higher than the level prevailing in 2006 during the previous real estate bubble, and it is even higher than the levels prevailing in the 1990s.
The opinion expressed above is dated as of 5th October 2018 and is liable to change.
This document is not pre-contractual or contractual in nature. It is provided for information purposes. The analyses and descriptions contained in this document shall not be interpreted as being advice or recommendations on the part of Lazard Frères Gestion SAS. This document does not constitute an offer or invitation to purchase or sell, nor an encouragement to invest. This document is the intellectual property of Lazard Frères Gestion SAS.
