Is the Market Improving? All Signs Point to Yes!
February 1, 2013
As 2013 kicks in to full gear, many reports have been released confirming that, yes, the real estate market is improving. But what exactly is contributing to the increasingly successful market?
Sales of previously-owned homes in 2012 were 4.65 million, up 9% from 2011, marking the best year for home sales since 2007. This increase in sales can be attributed to several factors, including historically low mortgage rates, lower unemployment and a nearly 5.5% increase in home prices.
While home sales are definitely an important marker for market improvement, it’s by no means the only measurement. In 2012, we also saw a 36.9% increase in new home construction, an indication of a significantly increased demand.
And, of course, none of this happens in a bubble. A recent study found that rising home prices is directly linked to consumer confidence. People invest a lot of time and money in to their homes, so when that value increases, they understandably feed more comfortable spending money in other sectors. And, with new homes being built, the necessity of decorating and furnishing creates increases in the appliance, furniture and retail industries.
Could the improvement of the real estate market be a sign of an improving economy? Leave a comment and let us know if you’ve seen the same signs.