US Housing Market, Caterpillar, Single Family Homes

September 24, 2015

Thursday – September 24

The Commerce Department reported Thursday that single-family home sales surged in August, while July’s numbers were also revised higher, signaling continued strength in the U.S. housing market. New Home Sales in August rose 5.7% from July to the highest rate since 2008 and are up nearly 22% since August 2014. Expectations were calling for 515,000 units in August. In addition, July’s numbers were revised to 522,000 from 507,000. The New Home Sales report shows the number of newly constructed homes with a committed sale during the month.

Dow component and heavy equipment maker Caterpillar reported Thursday that it will be cutting up to 5,000 jobs by the end of 2016 for cost cutting measures due to tough conditions in the energy sector. The company went on to say that layoffs could total 10,000 through 2018, while revenues could decline in 2016 for a record fourth straight year. In addition, Caterpillar will also offer a voluntary retirement enhancement program this year for qualifying workers.

RealtyTrac released its August 2015 Home Sales Report on Thursday revealing that single-family home and condo sales through August were on pace for an eight-year high nationwide and in 110 out of 204 (54%) metropolitan statistical areas with sufficient sales data. A total of near 2 million single-family homes and condos sold through August in 2015, up 5.4% from the beginning of the year, to the highest total for the first eight months of the year since 2007.