New York’s housing market is heading for a correction, says chief economist
The New York Stock Exchange has dropped a forecast for a housing market correction this year, in a move that comes as the Federal Reserve and the Federal Housing Finance Agency are grappling with the fallout from the housing collapse in the U.S. The Dow Jones Industrial Average dropped 3.1 points to 14,890.
The S&P 500 index, which tracks more than 100 major stocks, fell 2.9 points to 2,567.
The Nasdaq Composite index fell 2 percent to 6,988.
The CBOE Volatility Index, which measures the volatility of 10 major U.N. and non-U.S.-based securities, rose 1.9 percent to 0.831.
The 10-year Treasury yield jumped 0.6 basis points to 1.76 percent.
The price of a home fell 0.2 percent in New York, but rose 0.5 percent in other U.K. markets.
In London, where the benchmark price is 0.7 percent higher than in the capital, the average price for a home was up 0.3 percent in January.
“This is not going to be a normal year,” said Robert Shiller, an economist with BMO Capital Markets.
“It’s going to continue to be very volatile, but it’s not going as fast as we expect it to be.”
Shiller said the price gains are likely to continue, with the housing market now in the midst of a major correction.
He expects the Nasdaq to lose 5.3 percentage points to 7,934 this year.
The stock market is likely to decline 2.5 percentage points or more in 2017.
Shiller’s outlook for the Nasdex is much higher, saying it will fall 8.2 percentage points.
In January, the Nasds rose 3.9 percentage points, according to FactSet data.
The index is expected to fall 2.1 percentage points in 2018, according a Thomson Reuters calculation.
Shilling is predicting a 3.5-point correction in the Nasda.
He also expects the S&s to drop 3.4 points in 2017 and 3.2 points in February.
The average price of homes in New Zealand rose 3 percent in February, to $2,819, according, to real estate website Apartment List NZ.
The Australian benchmark price for homes was up 5.1 percent in December, to US$1,037, up from a 3 percent drop in December.