Here’s some great news on the Real Estate “home” front. (No pun intended).
According to several reports, there is a real housing recovery taking place, which has positive implications for the broader economy, not to mention positive implications for you, the homeowner. Previously occupied homes have seen a jump in sales, and when that is added to the gains in home construction, it suggests the U.S. housing recovery is finally gaining momentum. These signs of steady progress in the housing market are definitely a confident sign after years of stagnation.
With new home sales increasing, builder confidence has reached its highest level in more than six years. That, coupled with increases in home prices, appears to be a substantial positive for the overall housing market. As we start to experience home value appreciation, Americans usually feel wealthier and spend more money. Since consumer spending drives 70 percent of the economic growth, the increase of home prices can be seen as a decisive benefit.
Sales of previously occupied homes rose 7.8 percent in August from July. That’s the highest level since May, 2010, when sales were aided by a federal tax credit. In addition, U.S. builders broke ground on 2.3 percent more homes and apartments in August than July. The Commerce Department said the annual rate of construction rose to seasonally adjusted 700,000 homes. The increase was the best rate of single-family home construction since April of 2010. The bottom line here is that we see a definite upward tick in the confidence level within the housing market on the part of builders and buyers. This is the exact situation that leads us to steady (albeit moderate) gains in home prices.
In a final sign that the housing market is going in the right direction is that, nationwide, 10.8 million, or 22.3% of residential properties with a mortgage were underwater at the end of the second quarter, which was down from 12.8 million properties, or 23.7% at the end of the first quarter.
These factors definitely indicate an optimal buying situation for those Americans in a position to do so now!
Source: Bill Provost (Loan Consultant)
Vintage Mortgage Group
43537 Ridge Park Drive
Temecula, CA 92590
760-282-4415 CA Direct
425-241-1922 WA Direct
CA DRE License # 01867503
WA DFI License# MLO-101876
Marisa Ormando & Stan Chang www.abellahomes.com