Existing-homes, positive factors good news for real estate
Posted on Monday, January 27, 2014 at 9:41:10 AM
While a number of real estate experts have predicted several negative trends for the U.S. housing market, affordable residential financing, the economy and strong sales figures have painted a more positive picture.
According to the National Association for Realtors, existing-home sales reached their highest level in some time, up 1.0 percent in December month-over-month. In total, sales hit a seasonally adjusted annual rate of 4.87 million units for the month. Even better, 2013's entire figure was 9.1 percent above 2012, and the best its been since 2006 - near the peak of the housing boom.
However, some issues could get in the way of continued growth.
"The only factors holding us back from a stronger recovery are the ongoing issues of restrictive mortgage credit and constrained inventory," said NAR president Steve Brown. "With strict new mortgage rules in place, we will be monitoring the lending environment to ensure that financially qualified buyers can access the credit they need to purchase a home."
Even so, job growth may not be as bad as it seems. According to MarketWatch, there is a lot to be happy about. U.S. households are in a good financial position, and there are few headwinds to the U.S. economy, either in Washington, D.C., or globally.
Overall, these sectors are on an upward trend, and there appears to be a fair bit of growth on the horizon.