After a years of recession the housing market is on its way back up again. It was only a matter of time, as all the other major indexes have been improving this year.
'Growing confidence among consumers is what's fueling this optimism among builders,' reports National Association of Home Builders chairman Kevin Kelly. 'Members in many areas of the country continue to see increasing buyer traffic and signed contracts.'
And it could not have come at a better time. The housing index fell by five points in October in new, single-family units; but it went back up four points in November, to reach an index score of 58.
NAHB chief economist, David Crowe comments, 'Low interest rates, affordable home prices, and solid job creation are contributing to a steady housing recovery. After a slow start to the year, the HMI has remained above the 50-point benchmark for five consecutive months, and we expect the momentum to continue into 2015.'
A major component of growing confidence is price stability. When home prices begin to stabilize, the market is less volatile, and when this happens consumers continue to grow in confidence, knowing that if they wanted to buy a home, they would not have to worry, necessarily about sudden dips or spikes.
Kelly continues, 'Low mortgage rates, strong job growth, and affordable home prices make this a good time to buy a home.'
With median incomes around $63,000, it appears that most people are poised for a comeback.
Crowe continues, 'Even with nationwide home prices reaching their highest level since the end of 2007, affordability still remains fairly high by historical standards. Rising employment and incomes, interest rates that remain near historically low levels, and pent-up demand should contribute to positive momentum heading into next year.'
Posted by Unknown on Wednesday, November 19, 2014 - Rating: 4.5
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