Data shows growth in housing market
Posted on Tuesday, April 14, 2015 at 8:08:48 AM
Recent data related to the U.S. housing market shows a steady improvement in this sector, bolstered by rising interest in homes for sale.
According to a Redfin report, home tours ticked up nearly 45 percent in March compared to the same time in 2014, while signed offers increased 35 percent year-over-year. One of the biggest hiccups at this time was actually Easter, which slowed consumer demand at the end of March as buyers prepped for the holiday.
Overall, housing-market problems were few and far between. However, one of the biggest impediments to home sales was consumer sentiment, according to Fannie Mae. Today, many potential homebuyers are worried about their household income growth.
"We've seen modest improvement in total compensation resulting from a strengthened labor market," stated Doug Duncan, Fannie Mae senior vice president and chief economist, on April 7. "However, income growth perceptions and personal financial expectations both eased off of recent highs, consistent with Friday's weak jobs report."
The government-sponsored enterprise reported that only 41 percent of those polled in its National Housing Survey expect their personal financial situations to improve over the coming 12 months.
While residential financing rates remain low, consumer sentiment will remain a key factor behind a stronger housing market in 2015.