Decision Economics Cary Leahey talks about the latest encouraging housing data, and the expected impact of millennials on the market. Bobbi Rebell reports.
Housing starts near an eight year high here with more is this as an economic Carrie Lee great to see you thank you for having me so what this tells about the economy. It's good obviously housing is an. Important from running mate. And it's grinding higher as you said it's years a ten year high. And if you also look at it is that barometer of confidence in the economy it's possible plus and ironically house is doing better. But it's not as both car sales of if housing was good in his car sales we don't know the 2000 starts there's always outside possibilities but there are a lot of things going on will money was never via home. Is that impacting housing demand. But it's have recently that report. What's your sense then of maligning Els is that going to be a boost the market going forward we have a police seen yet obviously. I think so you you know you do have the that the aging of a fairly substantial court and it's not clear from either surveys or studies. If they really have changed your attitude for housing mean the thing that drives housing is income demographics the old joke if you have. 2.3 kids and one point eight pats and your 38 years old he's gonna buy a house. That's probably happen and I definitely change. And we are of course watching this closely because of the September fed meeting that is coming up is as yet one more reason why we're gonna. As many people believe he rate hike. I think so I mean you've now operated a one point two million units for two months you. One that you may get or they may have no inkling. Of next month's report by the time they meet in the middle of September but that's the second gear report that would still important secondary obviously payrolls those things coming down the pike. But I think right now that. Analytical community says chances are probably two out of three or three out of four that vote go among the traders is probably at best one attitude there more circumspect and more concerned about international conditions particularly regarding China and me you know lesser increase. He mentioned payrolls the labor market has continued to encrypt how did that factor in improving housing market. It's a lot once again income is that number one driver a if you have a job in the have a good paying job and it's the start thinking about. Buying homes for the incident to law that is yes and given the state of play of the labor market I mean if you said two years ago that we continue to grind out 200000 plus. Reports on on higher and you say that's great now we got so used to we've got to do something better than that they are they are quite good. It is Stanley Nelson is here from home so basically benefiting from the improving housing market can you talk about the a general. Spreading of good news regarding how different how that impacts corporations like Home Depot. Absolutely. In terms of sales new home sales are only about 20% of total sales existing or resales are 80% of the market so people. By and do homered existing home that they got to go lot by some stuff in places like Home Depot. Have a ton of that kind of stuff you get this kind of secondary. He threw up from these companies those that the whole peoples of the world can do very very well in this kind of environment. When you have strong. Housing activity and and the need to buy new appliances this device stuff whether it's not to bolster its a thousand dollar. Watcher or or even remodeled the kitchen as you know like when you just bought. Right thank you so much carried thank you. Our thanks to decision economics Kerry Leahy about your belt that is writers.