Reuters - Video

EDITION: U.S. | U.K. | IN

Business

Wealth Strategies: 2012 1st in multi-year housing recovery

Wednesday, Dec 19, 2012 - 04:43

Dec. 19 - Fitch's Bob Curran expects continued stabilization in the housing market in 2013 and feels companies like D.R. Horton, Meritage and Standard Pacific are best poised to see upgrades.

▲ Hide Transcript

View Transcript

How mark can get on our -- -- during this year but there are still continued economic concerns that building fiscal quit being one of them. So does recovery last into 2013. Here at his exclusive report on the outlook for housing and others is -- and managing director -- Fitch ratings gives -- enough. So we saw mixed data today on housing -- -- in terms of construction numbers. Is there enough and what we've seen so far on the data side to pin our hopes our car. -- -- thirteen. I think there is and in fact I think 2012. When will be seen as the first year of a multi year recovery. In 2013. I think we'll see are relatively similar growth in the the major housing macros yes. What we've seen in 2000. And it turns up from the translation into numbers what does that mean for home prices for instance and that increase in starts. Well first in terms of the starts. Starts actually in 2012 were paced by multifamily. Which were particularly vibrant. Nonetheless. The single family were still up in excess of 20%. We see a further -- gains. In that neighborhood in 2013. For single family starts the multifamily although still. Showing double digit increases. Aren't likely to be as robust. As was the case in 2012. In the case -- home prices. Home prices drugs Census Bureau average prices for example probably. In 2012. Were up in the neighborhood of three and a half to 4%. We see a similar increase in 2013. And and that bodes well for housing in general. An effect do you believe there is potential for upgrades in the building sector and 2013. Tell me a little bit about which companies would be in the best shape and it and they are more vulnerable. Query. Well first of all of the companies will benefit from. Of an uptick in the housing macros. But there are few companies from credit rating perspective. Bit seem poised to be able to take. Full advantage of that and have that potential of moving up and positive territory. When it comes to mind among the larger builders as DR Morton. A couple of other companies more intermediate sized companies. That have some potential. Would be Meritage Homes in Standard Pacific corporate. And it all up from the housing crisis a lot of that was with private sellers are any public. Home builders threatened at all heading to 2813. -- -- can always being missteps. And if the housing recovery. Counter to what we expect we're to falter and that probably would be because of something happening economically. Such as the fiscal cliff. Being realized -- recession developing. Then that company that has overspent Donnelly and much reduced liquidity. Could be in a more precarious position. In general terms but. The big public companies have typically been able to access the capital markets over recent years and this year and at the moment seem to have adequate liquidity. Relative to the kind of spending patterns they've been. I've realizing. During 2012 an expected for 2013. We know low mortgage rates have helped the housing market do you expect those rates to stay as close -- they are now. -- rates of kind of confounded the experts for an extended period of time. How much are too many experts have been correct with the direction of rates -- on the absolute level in their predictions. That having been said we think that rates could creep up 3040 basis points from where they are now. But mortgage rates are very very low by historic. Comparisons. And even moving up. The modest amount we suggest I don't think would deterred demeaned in effect it might prompt some fence sitters. To come out and -- To spot current thanks much for your outlook appreciate it thank you. I'm Rhonda schaffler that this writers.

Wealth Strategies: 2012 1st in multi-year housing recovery

Wednesday, Dec 19, 2012 - 04:43

Money »

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

Markets cheer Russia's Ukraine exit Markets cheer Russia's Ukraine exit

Fri, Aug 08, 2014 - (1:50)

Russia, Iraq push Dow to three-month low Russia, Iraq push Dow to three-month low

Thu, Aug 07, 2014 - (2:27)

Wall Street gains but telecom disconnected Wall Street gains but telecom disconnected

Wed, Aug 06, 2014 - (2:28)

Stocks zapped by energy weakness Stocks zapped by energy weakness

Tue, Aug 05, 2014 - (2:46)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)

The week that changed Boston The week that changed Boston

Mon, Apr 14, 2014 - (3:28)